Institutions and social capital in group lending

Michael Alexeev, Mira Nurmakhanova () and Leonid I. Polishchuk ()
Additional contact information
Mira Nurmakhanova: KIMEP University, Almaty, Kazakhstan
Leonid I. Polishchuk: HSE University, Moscow, Russia

Russian Journal of Economics, 2021, vol. 7, issue 4, 269-296

Abstract: Formal institutions and social capital interact with each other in multiple ways. We argue and show empirically at the cross-country level that in the case of group lending, contract enforcement complements bonding social capital and substitutes for bridging one. It means that payoff to social capital in group lending depends on social capital type and is contingent on the quality of contract enforcement which serves as a sorting factor, working in the opposite directions for different stripes of social capital. These results are robust to various estimations, sets of controls, and social capital measures.

Keywords: social; capital; contract; enforcement; microfinance. (search for similar items in EconPapers)
JEL-codes: G21 L14 O12 O17 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://rujec.org/article/76647/

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arh:jrujec:v:7:y:2021:i:4:p:269-296

DOI: 10.32609/j.ruje.7.76647

Access Statistics for this article

Russian Journal of Economics is currently edited by Alexey Kudrin

More articles in Russian Journal of Economics from ARPHA Platform
Bibliographic data for series maintained by Teodor Georgiev ().