Microfinance Performance and Social Capital: A Cross-country AnalysisThis paper investigates the relationship between the extent to which social capital formation is facilitated within different societies, and the financial and social performance of MFIs. We carry out a cross-country analysis on a dataset containing 100 countries. We identify different social dimensions that we use as proxies for how easy social capital can be developed in different countries, and we hypothesize that microfinance is more successful, both in terms of their financial and social aims, in societies that are more conducive to the development of social capital. Our empirical results support our hypothesis. / Defining Social Collateral in Microfinance Group Lending: Microfinance group lending with joint liability allows asset-poor individuals to replace physical collateral by social collateral. This paper provides a theoretical framework to evaluate the impact of social collateral pledged by group borrowers on group lending repayment. We take into account the external ties of group borrowers, i.e. the social ties linking borrowers to non-borrowers from their community, whereas previous work in this field has looked solely at internal ties (i.e. ties between group members). Our model stresses the impact of network configuration on the amount of social capital pledged as collateral. It shows why the group lending methodology works better in rural areas than in urban areas, namely because rural social networks are typically denser than urban ones, which results in higher social collateral. / The Economic Value of Social Capital:Empirical studies on the importance of social capital for poor households show divergent outcomes. This divergence may stem from the lack of a conceptual framework for capturing the social capital dimensions that deliver economic value to individuals. This paper defines individual social capital from an economic perspective and proposes a measurement based on the two dimensions of individual social capital that bring economic value to individuals: (1) informal risk insurance arrangements and (2) information advantages that arise from personal social networks. Using this measurement, I present a numerical application to argue that differing network configurations drive asymmetry of social interactions among individuals. / Social Capital and the Repayment of Microfinance Group Lending: A Case Study of Pro Mujer Mexico:In this paper, we investigate how social networks of group borrowers come into play in joint liability group lending. We use a large, original dataset with 802 mapped social networks of borrowers from Pro Mujer Mexico. We are the first to examine external ties, that is, social ties with individuals outside the borrowing group. We have two main findings. First, borrowers with stronger informal risk insurance arrangements are in better economic shape and have a higher capacity to pay than borrowers with weaker informal risk insurance arrangements. Second, borrowers who pledge valuable ties as social collateral have fewer repayment problems. We postulate that borrowers receive effective help from their ties in cases of need. / Doctorat en Sciences économiques et de gestion / info:eu-repo/semantics/nonPublished
| Identifer | oai:union.ndltd.org:ulb.ac.be/oai:dipot.ulb.ac.be:2013/223521 |
| Date | 20 January 2016 |
| Creators | Postelnicu, Luminita |
| Contributors | Szafarz, Ariane, Hermes, Niels, Gassner, Marjorie, Hudon, Marek, Bastiaensen, Johan, Morvant-Roux, Solène |
| Publisher | Universite Libre de Bruxelles, Université libre de Bruxelles, Faculté Solvay Brussels School of Economics and Management, Bruxelles |
| Source Sets | Université libre de Bruxelles |
| Language | English |
| Detected Language | English |
| Type | info:eu-repo/semantics/doctoralThesis, info:ulb-repo/semantics/doctoralThesis, info:ulb-repo/semantics/openurl/vlink-dissertation |
| Format | No full-text files |
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