Social Capital Formation in an Imperfect Credit Market
This study uses a unique long panel dataset from Sri Lanka to examine the mechanism of social capital formation in an imperfect credit market. The authors show that households in the face of credit constraints reduce the time allocation for social capital investment, such as participation in community works. The paper also finds that temporal declines in social capital investment persistently reduce the level of trust in the community. These findings imply the existence of a poverty trap, because the absence of a credit market access generates poor social capital which, in turn, leads to poor access to the informal credit market, causing further credit constraints.
|Date of creation:||01 Mar 2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://jica-ri.jica.go.jp/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Shoji, Masahiro & Aoyagi, Keitaro & Kasahara, Ryuji & Sawada, Yasuyuki, 2010. "Motives behind Community Participation," Working Papers 16, JICA Research Institute.
- Kerwin Charles & Patrick Kline, 2002.
"Relational Costs and the Production of Social Capital: Evidence from Carpooling,"
NBER Working Papers
9041, National Bureau of Economic Research, Inc.
- Kerwin Kofi Charles & Patrick Kline, 2006. "Relational Costs and the Production of Social Capital: Evidence from Carpooling," Economic Journal, Royal Economic Society, vol. 116(511), pages 581-604, 04.
- Rose, Elaina, 2001. "Ex ante and ex post labor supply response to risk in a low-income area," Journal of Development Economics, Elsevier, vol. 64(2), pages 371-388, April.
- Alesina, Alberto & La Ferrara, Eliana, 2002.
"Who trusts others?,"
Journal of Public Economics,
Elsevier, vol. 85(2), pages 207-234, August.
When requesting a correction, please mention this item's handle: RePEc:jic:wpaper:3. 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: (Japan International Cooperation Agency Library)
If references are entirely missing, you can add them using this form.