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Social Capital, Network Effects and Savings in Rural Vietnam

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  • Carol Newman
  • Finn Tarp
  • Katleen van den Broeck

Abstract

Information failures are a major barrier to formal financial saving in low income countries. Households in rural communities often lack the information necessary to set up formal deposit accounts or are uncertain about the returns to saving formally. In this paper, we explore the extent to which social networks in rural Vietnam can play a role in increasing formal savings where knowledge gaps exist. Networks are defined as active membership of women's unions and the quality of networks is measured by the level of formal savings observed among group members.

Suggested Citation

  • Carol Newman & Finn Tarp & Katleen van den Broeck, 2012. "Social Capital, Network Effects and Savings in Rural Vietnam," WIDER Working Paper Series wp-2012-039, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp-2012-039
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    4. Jeffry Jacob & Abdul Munasib, 2020. "Do social networks promote homeownership?," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 67(2), pages 189-230, June.
    5. Thomas Markussen, 2015. "Social and political capital in rural Vietnam," WIDER Working Paper Series 087, World Institute for Development Economic Research (UNU-WIDER).
    6. Ha van Dung, 2014. "Short-term precaution, insurance and saving mechanisms in rural Vietnam," Working Papers CIE 82, Paderborn University, CIE Center for International Economics.
    7. Andrzej Cwynar & Wiktor Cwynar & Mieczysław Kowerski & Kamil Filipek & Przemysław Szuba, 2020. "Debt literacy and debt advice-seeking behaviour among Facebook users: the role of social networks," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 20(1), pages 1-33.
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    9. Carol Newman & Christina Kinghan, 2015. "Social capital, political connections, and household enterprises: Evidence from Vietnam," WIDER Working Paper Series 001, World Institute for Development Economic Research (UNU-WIDER).

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