IDEAS home Printed from https://ideas.repec.org/a/jda/journl/vol.40year2007issue2pp111-132.html
   My bibliography  Save this article

Interdependencies in micro-credit group: evidence from repayment data

Author

Listed:
  • Nidhiya MenonAuthor-Email: nmenon@brandeis.edu

    (Brandeis University, USA)

Abstract

We use repayment data from Grameen Bank groups to study mutual dependence in behavior among participants. Such dependence is a measure of group cohesion, and is interpreted as evidence for the existence of inter-connectedness among members at the group level. Results from a dynamic fixed-effects probit model demonstrate that individual repayment outcomes are significantly influenced by own lagged repayment behavior, and by averages of lagged repayment behaviors for the remaining members of a group. Simulations of own and cross effects between participants provide further support for strong inter-dependencies at the group level in repayment outcomes. By strengthening mutual support networks, such inter-dependencies may be crucial for poverty alleviation in developing countries such as Bangladesh.

Suggested Citation

  • Nidhiya MenonAuthor-Email: nmenon@brandeis.edu, 2007. "Interdependencies in micro-credit group: evidence from repayment data," Journal of Developing Areas, Tennessee State University, College of Business, vol. 40(2), pages 111-132, January-M.
    • Handle: RePEc:jda:journl:vol.40:year:2007:issue2:pp:111-132
    as

    Download full text from publisher

    File URL: http://muse.jhu.edu/journals/jda/summary/v040/40.2menon.html
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Inter-dependences; Repayment; Grameen Bank;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jda:journl:vol.40:year:2007:issue2:pp:111-132. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Abu N.M. Wahid (email available below). General contact details of provider: https://edirc.repec.org/data/cbtnsus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.