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Social Capital And Credit In A Javanese Village


  • Aloysius Gunadi Brata

    (University of Atma Jaya Yogyakarta)


The objective of this study is to investigate empirically the influence of social capital on the rural credit in the case of a Javanese village. Estimation results indicate difference impact of social capital on each type of credit. Meeting attendance was found positively influence the amount of formal credit. Meanwhile, number of memberships negatively affects the amount of informal credit. This study also confirms that the rural elites have more accessibility to economic opportunities such as formal credit than non-elites do. Therefore, this study suggests that the implementation of formal credit program in rural areas should consider not only the existing social capital but also the elites in the rural society. This approach perhaps bring improvement on the role of formal credit program as an anti poverty program in rural areas.

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  • Aloysius Gunadi Brata, 2004. "Social Capital And Credit In A Javanese Village," Finance 0410008, EconWPA.
  • Handle: RePEc:wpa:wuwpfi:0410008
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    References listed on IDEAS

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    Cited by:

    1. A. Lasagni & E. Lollo, 2011. "Participation in Rotating Savings and Credit Associations in Indonesia: New Empirical Evidence on Social Capital," Economics Department Working Papers 2011-EP05, Department of Economics, Parma University (Italy).

    More about this item


    social capital; rural credit; rural elites;

    JEL classification:

    • G - Financial Economics

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