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Closing the gap: the link between social capital and microfinance services

  • Lopez-Rodriguez, Patricia
  • De la Torre Garcia, Rodolfo

The social capital has strengthened the solidarity funds when the legal mechanisms and institutions for monitoring and assistance would not have been present. The aim of this paper is to analyze the effect of social capital on productivity and performance of the Mexican solidarity funds. For this it is obtained an estimator indirectly associated with inequality, through which it follows that if the social capital rises 1% the loans number increases by 0.2877% and the savings number increases by 0.4598%, and for each additional producer that activate his social capital with his partners they will be generated increases in loans recoveries amounting to 597.41 pesos. In this sense, a greater investment in social capital will recover a larger amount of borrowed funds and will increase savings and loans to poor producers

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File URL: http://mpra.ub.uni-muenchen.de/22974/1/MPRA_paper_22974.pdf
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File URL: http://mpra.ub.uni-muenchen.de/23220/2/MPRA_paper_23220.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 22974.

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Date of creation: Jul 2000
Date of revision: Jun 2009
Handle: RePEc:pra:mprapa:22974
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  1. Esteban, Joan & Ray, Debraj, 1994. "On the Measurement of Polarization," Econometrica, Econometric Society, vol. 62(4), pages 819-51, July.
  2. Samuel Bowles & Glenn C. Loury & Rajiv Sethi, 2014. "Group Inequality," Journal of the European Economic Association, European Economic Association, vol. 12(1), pages 129-152, 02.
  3. Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer & Robert W. Vishny, 1996. "Trust in Large Organizations," NBER Working Papers 5864, National Bureau of Economic Research, Inc.
  4. Jonathan Temple & Paul Johnson, 1996. "Social capability and economic development," Economics Papers 21 & 114, Economics Group, Nuffield College, University of Oxford.
  5. Kondor, Yaakov, 1971. "An Old-New Measure of Income Inequality," Econometrica, Econometric Society, vol. 39(6), pages 1041-42, November.
  6. repec:cup:cbooks:9780521433297 is not listed on IDEAS
  7. Besley, Timothy & Coate, Stephen & Loury, Glenn, 1993. "The Economics of Rotating Savings and Credit Associations," American Economic Review, American Economic Association, vol. 83(4), pages 792-810, September.
  8. repec:cup:cbooks:9780521438827 is not listed on IDEAS
  9. Heller, Patrick, 1996. "Social capital as a product of class mobilization and state intervention: Industrial workers in Kerala, India," World Development, Elsevier, vol. 24(6), pages 1055-1071, June.
  10. Robison, Lindon J. & Hanson, Steven D., 1995. "Social Capital And Economic Cooperation," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(01), July.
  11. Beatriz Armendariz & Jonathan Morduch, 2007. "The Economics of Microfinance," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262512017, June.
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