Network Based Social Capital and Individual Loan Repayment Performance

Thomas Dufhues, Gertrud Buchenrieder, neé Schrieder, Dirk G. Euler and Nuchanata Munkung

Journal of Development Studies, 2011, vol. 47, issue 8, 1199-1215

Abstract: This study analyses the effects of social capital on the repayment behaviour of borrowers in Thailand. 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. Bonding social capital has a significant and positive influence on repayment performance. However, we find no significant evidence for an effect of bridging and linking social capital.

Date: 2011
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DOI: 10.1080/00220388.2010.547936

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