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Access To Credit And Social Capital: The Case Of Indonesia, Muhammad Syaiful, Bayu Kharisma

The Journal of Sociology & Social Welfare

This paper analyzes the relationship between social capital and individuals’ access to credit in Indonesia. We used the data from the fifth wave of the Indonesian Family Life Survey (IFLS5) and focused on the “flow” aspect of social capital, i.e., participation in various activities that can be regarded as an addition to the general “stock” of social capital. The results showed that two participation characteristics in social activities, namely “voluntary-type” and “economic-embedded” activities which affect creditmarket outcome. Using an extended probit model with correction for selection bias and endogenous regressor, we found that investment in the latter activity can improve …