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Social capital and loan repayment performance in Southeast Asia

Author

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  • Dufhues, Thomas
  • Buchenrieder, Gertrud
  • Quoc, Hoang Dinh
  • Munkung, Nuchanata

Abstract

This paper analyses the effects of different forms of social capital on credit repayment behaviour. In the context of development economics an innovative data collection approach is used that originates from the field of sociology. A personal network survey is carried out to measure the individual social capital of borrowers. We distinguish four social capital variables between the respondent and his/her network members according to tie strength (bonding/bridging) and social distance (bondinglink/bridginglink). The effects of social capital vary according to socio-cultural context. For instance, in Thailand bonding and in Vietnam bridginglink social capital has a positive effect on loan repayment.

Suggested Citation

  • Dufhues, Thomas & Buchenrieder, Gertrud & Quoc, Hoang Dinh & Munkung, Nuchanata, 2011. "Social capital and loan repayment performance in Southeast Asia," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(5), pages 679-691.
  • Handle: RePEc:eee:soceco:v:40:y:2011:i:5:p:679-691
    DOI: 10.1016/j.socec.2011.05.007
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    2. Luminita Postelnicu & Niels Hermes, 2018. "Microfinance Performance and Social Capital: A Cross-Country Analysis," Journal of Business Ethics, Springer, vol. 153(2), pages 427-445, December.
    3. Luminita Postelnicu & Niels Hermes & Ariane Szafarz, 2013. "Defining Social Collateral in Microfinance Group Lending," Working Papers CEB 13-050, ULB -- Universite Libre de Bruxelles.
    4. 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.
    5. Hong Sun & Valentina Hartarska & Lezhu Zhang & Denis Nadolnyak, 2018. "The Influence of Social Capital on Farm Household’s Borrowing Behavior in Rural China," Sustainability, MDPI, Open Access Journal, vol. 10(12), pages 1-20, November.
    6. Luminita Postelnicu, 2012. "Social Capital and Repayment Performance of Group Lending in Microfinance," Working Papers CEB 12-032, ULB -- Universite Libre de Bruxelles.
    7. Luminita Postelnicu & Niels Hermes & Roselia Servin Juarez, 2015. "Social Capital and the Repayment of Microfinance Group Lending. A Case Study of Pro Mujer Mexico," Working Papers CEB 15-023, ULB -- Universite Libre de Bruxelles.
    8. Liqiong Lin & Weizhuo Wang & Christopher Gan & Quang T. T. Nguyen, 2019. "Credit Constraints on Farm Household Welfare in Rural China: Evidence from Fujian Province," Sustainability, MDPI, Open Access Journal, vol. 11(11), pages 1-19, June.
    9. Yan Yuan & Lihe Xu, 2013. "What determine the interest rates in China's informal market?," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 11(3), pages 179-196, August.
    10. Thomas Dufhues & Gertrud Buchenrieder & Hoang Dinh Quoc, 2012. "Social capital and loan repayment performance in Northern Vietnam," Agricultural Economics, International Association of Agricultural Economists, vol. 43(3), pages 277-292, May.

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