IDEAS home Printed from https://ideas.repec.org/a/eco/journ1/2017-03-9.html
   My bibliography  Save this article

Social Capital in Moneylenders Phenomenon in Blimbing Traditional Market Malang Indonesia

Author

Listed:
  • Bunga Hidayati

    (Interdiciplinary Graduate, School of Agriculture and Engineering, University of Miyazaki, Japan,)

  • Naoyuki Yamamoto

    (Faculty of Agriculture, University of Miyazaki, Japan,)

  • Hideyuki Kano

    (Faculty of Agriculture, University of Miyazaki, Japan,)

  • Agus Suman

    (Faculty of Economics and Bussiness, Brawijaya University, Indonesia,)

  • Asfi Manzilati

    (Faculty of Economics and Bussiness, Brawijaya University, Indonesia)

Abstract

A moneylender is a person who lends money at excessively high rates of interest. The moneylender is called loan shark. The reality shows that moneylender is still an important capital source for merchants. The aim of this research is to know the role of social capital (network, trust, and norm) on moneylender phenomenon. By using phenomenology, the result shows that: (1) Social capital makes merchants prefer using moneylender than formal financial institutions, (2) the more personal relationship that is part of a network makes moneylender is friendlier than the formal financial institution, (3) the intensity of interaction creates trusts that can substitute collateral, (4) moneylender behavior which is humanist is accepted by merchants as added value.

Suggested Citation

  • Bunga Hidayati & Naoyuki Yamamoto & Hideyuki Kano & Agus Suman & Asfi Manzilati, 2017. "Social Capital in Moneylenders Phenomenon in Blimbing Traditional Market Malang Indonesia," International Journal of Economics and Financial Issues, Econjournals, vol. 7(3), pages 57-61.
  • Handle: RePEc:eco:journ1:2017-03-9
    as

    Download full text from publisher

    File URL: http://www.econjournals.com/index.php/ijefi/article/download/4373/pdf
    Download Restriction: no

    File URL: http://www.econjournals.com/index.php/ijefi/article/view/4373/pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Shoji, Masahiro & Aoyagi, Keitaro & Kasahara, Ryuji & Sawada, Yasuyuki & Ueyama, Mika, 2012. "Social Capital Formation and Credit Access: Evidence from Sri Lanka," World Development, Elsevier, vol. 40(12), pages 2522-2536.
    2. Distinguin, Isabelle & Rugemintwari, Clovis & Tacneng, Ruth, 2016. "Can Informal Firms Hurt Registered SMEs’ Access to Credit?," World Development, Elsevier, vol. 84(C), pages 18-40.
    3. Dean Karlan & Markus Mobius & Tanya Rosenblat & Adam Szeidl, 2009. "Trust and Social Collateral," The Quarterly Journal of Economics, Oxford University Press, vol. 124(3), pages 1307-1361.
    4. DeanS. Karlan, 2007. "Social connections and group banking," Economic Journal, Royal Economic Society, vol. 117(517), pages 52-84, February.
    5. Håkansson, Håkan & Snehota, Ivan, 2006. "No business is an island: The network concept of business strategy," Scandinavian Journal of Management, Elsevier, vol. 22(3), pages 256-270, September.
    6. Hoff, Karla & Stiglitz, Joseph E., 1998. "Moneylenders and bankers: price-increasing subsidies in a monopolistically competitive market," Journal of Development Economics, Elsevier, vol. 55(2), pages 485-518, April.
    7. Levien, Michael, 2015. "Social Capital as Obstacle to Development: Brokering Land, Norms, and Trust in Rural India," World Development, Elsevier, vol. 74(C), pages 77-92.
    8. Mallick, Debdulal, 2012. "Microfinance and Moneylender Interest Rate: Evidence from Bangladesh," World Development, Elsevier, vol. 40(6), pages 1181-1189.
    9. Besley, Timothy & Coate, Stephen, 1995. "Group lending, repayment incentives and social collateral," Journal of Development Economics, Elsevier, vol. 46(1), pages 1-18, February.
    10. Yuan, Yan & Xu, Lihe, 2015. "Are poor able to access the informal credit market? Evidence from rural households in China," China Economic Review, Elsevier, vol. 33(C), pages 232-246.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Social Capital; Moneylender; Merchants;

    JEL classification:

    • Z1 - Other Special Topics - - Cultural Economics
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ1:2017-03-9. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ilhan Ozturk). General contact details of provider: http://www.econjournals.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.