Social Capital and the Repayment of Microfinance Group Lending

Luminita Postelnicu

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Abstract: Microfinance Performance and Social Capital: A Cross-country AnalysisThis paper investigates the relationship between the extent to which social capital formation is facilitated within different societies, and the financial and social performance of MFIs. We carry out a cross-country analysis on a dataset containing 100 countries. We identify different social dimensions that we use as proxies for how easy social capital can be developed in different countries, and we hypothesize that microfinance is more successful, both in terms of their financial and social aims, in societies that are more conducive to the development of social capital. Our empirical results support our hypothesis.

Keywords: microfinance; social collateral; social capital; group lending; social capital measurement (search for similar items in EconPapers)
Date: 2016-01-20
New Economics Papers: this item is included in nep-ban, nep-mfd and nep-soc
Note: Degree: Doctorat en Sciences économiques et de gestion
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Persistent link: https://EconPapers.repec.org/RePEc:ulb:ulbeco:2013/223521

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