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Social capital and loan repayment performance in Northern Vietnam

Authors

  • Thomas Dufhues,

    1. Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO), Halle (Saale), Germany
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  • Gertrud Buchenrieder,

    Corresponding author
    1. Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO), Halle (Saale), Germany
    2. Martin-Luther-University Halle-Wittenberg, Halle (Saale), Germany
      Tel.: +49 (160) 97654164. E-mail address: buchenrieder@yahoo.de (G. Buchenrieder).
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  • Hoang Dinh Quoc

    1. Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO), Halle (Saale), Germany
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  • Data Appendix Available Online
    A data appendix to replicate main results is available in the online version of this article. Please note: Wiley-Blackwell, Inc. is not responsible for the content or functionality of any supporting information supplied by the authors. Any queries (other than missing material) should be directed to the corresponding author for the article.

Tel.: +49 (160) 97654164. E-mail address: buchenrieder@yahoo.de (G. Buchenrieder).

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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