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Social capital and loan repayment performance in Northern Vietnam
Author(s) -
Dufhues Thomas,
Buchenrieder Gertrud,
Quoc Hoang Dinh
Publication year - 2012
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/j.1574-0862.2012.00582.x
Subject(s) - social capital , respondent , loan , social network (sociolinguistics) , economics , business , social mobility , payment , labour economics , demographic economics , public economics , finance , sociology , political science , social science , law , social media
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.