New Economics Papers
on Microfinance
Issue of 2010‒06‒04
one paper chosen by
Aastha Pudasainee and Olivier Dagnelie

  1. Closing the gap: the link between social capital and microfinance services By Lopez-Rodriguez, Patricia; De la Torre Garcia, Rodolfo

  1. By: Lopez-Rodriguez, Patricia; De la Torre Garcia, Rodolfo
    Abstract: The social capital has strengthened the solidarity funds when the legal mechanisms and institutions for monitoring and assistance would not have been present. The aim of this paper is to analyze the effect of social capital on productivity and performance of the Mexican solidarity funds. For this it is obtained an estimator indirectly associated with inequality, through which it follows that if the social capital rises 1% the loans number increases by 0.2877% and the savings number increases by 0.4598%, and for each additional producer that activate his social capital with his partners they will be generated increases in loans recoveries amounting to 597.41 pesos. In this sense, a greater investment in social capital will recover a larger amount of borrowed funds and will increase savings and loans to poor producers
    Keywords: Keywords: social capital; microfinances; financial cooperatives; market failures; asimetric information; relationships; networks.
    JEL: O18 D63 D02 Z13 N26 O17 O16 C81 G21
    Date: 2000–07

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