IDEAS home Printed from
   My bibliography  Save this paper

Social Capital And Its Influence On Rural Credit Market


  • Fernando Perrini Daruge
  • Roberto Arruda de Souza Lima


This study analyses the relationship between social capital accumulation and the amount of rural credit market contracts of the State of Sao Paulo, Brazil. The most important definitions of social capital found on literature and the main ways of creation and measure this variable were reported. It discusses the connection between social capital and information and how this relation contributes to the reduction of financial intermediation's transaction costs, that results on rural credit volume increasing. It was used the same logit regression model that have been created and used by LIMA (2003), to empirically test the effect of social capital on the volume of rural credit. The data, from the municipalities of the State of Sao Paulo, are from 2007/2008 official statistics (Farm Census, LUPA and SEADE's data basis). The results indicate that the level of social capital is positively-correlated with the amount of rural credit. That shows the governmental incentives to further increase and maintain social capital would result on rural sector's development.

Suggested Citation

  • Fernando Perrini Daruge & Roberto Arruda de Souza Lima, 2011. "Social Capital And Its Influence On Rural Credit Market," ERSA conference papers ersa10p117, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa10p117

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Hjollund, L. & Svendsen, G.T., 2000. "Social Capital: A Standard Method of Measurement," Papers 00-9, Aarhus School of Business - Department of Economics.
    2. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa10p117. 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: (Gunther Maier). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.