Social capital and loan repayment performance in Northern Vietnam |
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Authors: | Thomas Dufhues Gertrud Buchenrieder Hoang Dinh Quoc |
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Affiliation: | 1. Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO), Halle (Saale), Germany;2. Martin‐Luther‐University Halle‐Wittenberg, Halle (Saale), Germany |
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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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Keywords: | C81 C83 G21 Q12 Social capital Loan repayment Vietnam |
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