Social capital and loan repayment performance in Northern Vietnam

Type Journal Article - Agricultural Economics
Title Social capital and loan repayment performance in Northern Vietnam
Author(s)
Volume 43
Issue 3
Publication (Day/Month/Year) 2012
Page numbers 277-292
URL http://agris.fao.org/agris-search/search.do?recordID=US201301960899
Abstract
This study analyses the effects of social capital on the loan repayment behavior of borrowers in Vietnam. In the context of agricultural economics, an innovative data collection approach is used that originates from the field of sociology. A personal network survey is carried out to measure the individual social capital of borrowers. Social capital variables are defined according to tie strength (bonding/bridging) and social distance (linking) between the respondent and his/her network member. Social capital has a significant and positive influence on the rescheduling of loans. However, we find no significant evidence for an effect of social capital on late payment of principal or interest.

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