Thomas Dufhues

Network Based Social Capital and Individual Loan Repayment Performance

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.

Social Capital and Market Imperfections: Accessing Formal Credit in Thailand

Social capital matters in the economy. This study shows how different forms of individual social capital affect access to formal credit in rural Thailand. Social capital is defined as interpersonal network (ties) resources. A data collection approach is used that originates in the field of sociology and is innovative in the context of development economics: the personal network survey. Four social capital variables are defined according to the tie strength and social distance between the respondent and his/her network members, resulting in four different social capital variables: (1) bonding (strong ties to persons of similar social standing); (2) bridging (weak ties to persons of similar social standing); (3) bondinglink (strong ties to persons of higher social standing); and (4) bridginglink (weak ties to persons of higher social standing). It has been found that bondinglink social capital reduces the chances of being credit access-constrained. Political patronage or nepotism as the driving force behind the result is ruled out. Nevertheless, some evidence for elite capture was found.

Individual social capital and access to rural services in Northern Vietnam

Purpose - – The purpose of this paper is to analyze the effects of network-based individual social capital on the access of rural households to services. Design/methodology/approach - – In the context of development economics, an innovative data collection approach is used to determine network-based social capital. The approach originates from the field of sociology and entails a personal network survey. The authors define four social capital variables according to tie strength and social distance between the respondent and his/her network member. Findings - – Social network ties are not homogeneous. The econometric results suggest that social capital with weaker ties in combination with socially distant ties can potentially improve households’ access to rural services. Research limitations/implications - – The empirical survey focusses on a single province in Northern Vietnam. Thus, the main limitation of the micro-study is its regional focus. A more representative sample of the whole country would be desirable to backup the policy recommendation. Originality/value - – The results indicate that access to services in rural Vietnam it still too personalized and subjective. Thus, a thorough review of the access procedures and making them more objective would be better choice. This would also root out a potential alley for corruption and nepotism.

Participatory Local Governance and Cultural Practices in Thailand

Abstract How do cultural practices influence the process of participatory governance within local administrative structures? We address this question by reflecting cultural dimensions, such as collectivism, uncertainty avoidance, and power distance within a contextual sensitive “cultural sensemaking” model. The modelled context refers to community development meetings held in Thai communities. Here people gather to discuss development plans, which are later finalized at the Tambon Administrative Organization (TAO). We hypothesize that cultural practices influence action by giving the people the rules for action. The analysis of culture in the context of these meetings is an interpretive one and involves qualitative observation of and structured interviews. Our results show that the prevailing cultural practices do not promote truly transparent and open discussions as ascribed to participatory governance tools. Consequently, local leaders employ a subtle paternalistic leadership style. Yet, cultural practices change towards a more open and participatory rural society.