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| Author: | Cassar, A. Crowley, L. Wydick, B. |
| Title: | The effect of social capital on group loan repayment: evidence from field experiments |
| Journal: | Economic Journal
2007 : FEB, VOL. 117:517, p. F85-F106 |
| Index terms: | financing groups liability loans Armenia South Africa |
| Freeterms: | social capital |
| Language: | eng |
| Abstract: | The relevance of existing social capital in target communities to the performance of group lending is a key point of microfinance. The article presents evidence from field experiments in South Africa and Armenia, in which subjects participate in trust and microfinance games. The authors present evidence that personal trust between group members and social homogeneity are more important to group loan repayment than general societal trust or acquaintanceship between members. |
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