The Impact of Social Capital on Credit Access for Poor Women in Ha Tinh, Vietnam

Abstract

Access to credit plays a crucial role in the economic development of poor women. Social capital is a significant factor in augmenting loan amounts for impoverished women to increase credit access. A comprehensive assessment of the impact of social capital on poor women’s credit access is imperative. This study utilizes survey data from 114 impoverished women in Ha Tinh province, combined with Ordinary Least Squares (OLS) regression, to ascertain the influence of social capital on poor women’s credit access. The research findings reveal that social capital significantly impacts poor women’s credit access through three dimensions: formal networks, informal networks, and trust. Moreover, the study demonstrates that loan characteristics and the attributes of borrowers and households also substantially influence poor women’s credit access in Ha Tinh province, Vietnam.