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Social Capital And Credit In A Javanese Village

Listed author(s):
  • 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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Paper provided by EconWPA in its series Finance with number 0410008.

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Length: 10 pages
Date of creation: 11 Oct 2004
Handle: RePEc:wpa:wuwpfi:0410008
Note: Type of Document - pdf; pages: 10
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