Family Networks and Microcredit Access in Kenya
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Date
2017-12
Authors
Kinyanjui, George Kariuki
Mdoe, Idi Jackson
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of African Political Economy and Development
Abstract
For a long time now, social networks have been hailed for lowering otherwise
high information and search cost to agents as well as making a principal’s
market dominance increasingly ample. We therefore use the data from the 2016
FinAccess Household Survey for Kenya to unravel the effects of family networks
in increasing the probabilities of members accessing microcredit. Broadly,
we seek to verify whether family networks impact loan uptake by members
of households and how this effect differ across gender. Employing the limited
dependent variable modelling in our analysis, we find that family networks are
vital in reducing search and information costs. Active networks increase the
probability of accessing credit compared to non-active networks. This effect
is more pronounced among women thus been in tandem with literature on
determinants of credit access by women.
Description
A Research Article in the Journal of African Political Economy and Development
Keywords
Social Networks, Credit Access.
Citation
Kinyanjui, G. K., & Jackson, M. I. (2017). Family networks and microcredit access in Kenya. Journal of African Political Economy and Development, 2(1), 125-144.