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Social capital and loan repayment performance in Southeast Asia

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

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.

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Article provided by Elsevier in its journal Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics).

Volume (Year): 40 (2011)
Issue (Month): 5 ()
Pages: 679-691

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Handle: RePEc:eee:soceco:v:40:y:2011:i:5:p:679-691
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/620175

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