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Social Capital and Savings Behaviour: Evidence from Vietnam

Author

Listed:
  • Carol Newman

    (Institute for International Integration Studies, Trinity College Dublin)

  • Finn Tarp

    (Department of Economics, University of Copenhagen)

  • Katleen Van Den Broeck

    (Department of Economics, University of Copenhagen)

Abstract

We explore the extent to which social capital can play a role in imparting information about the returns to saving where potential knowledge gaps and mistrust exists. Using data from Vietnam we find strong evidence to support the hypothesis that information transmitted via reputable social organizations increases the proportion of liquid assets held in the form of deposits that yield a return. Our results imply that targeting information on the benefits of deposit saving through formal networks or groups would be effective in increasing the number of households that save at grassroots level.

Suggested Citation

  • Carol Newman & Finn Tarp & Katleen Van Den Broeck, 2011. "Social Capital and Savings Behaviour: Evidence from Vietnam," The Institute for International Integration Studies Discussion Paper Series iiisdp351, IIIS.
  • Handle: RePEc:iis:dispap:iiisdp351
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    References listed on IDEAS

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    Cited by:

    1. Michael King, 2012. "Assistant Professor," The Institute for International Integration Studies Discussion Paper Series iiisdp399, IIIS.

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    More about this item

    Keywords

    Household Savings; Social Capital; Information Failure; Risk Aversion;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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