Can social cohesion be harnessed to repair market failures? Evidence from group lending in Guatemala

Article Abstract:

A study is conducted to test the significance of three types of social cohesion - peer monitoring, social ties and borrowing group pressure - on borrowing group performance. Empirical analyses of group borrowing data from Guatemala suggest that peer monitoring has a substantial impact on borrowing group performance through stimulation of intra-group insurance. It is determined that group pressure has a small effect in deterring moral hazard, while the impact of social ties on members is statistically insignificant.

All Other Nondepository Credit Intermediation, NONDEPOSITORY INSTITUTIONS, Special Credit Institutions, Social aspects, Economic aspects, Financial institutions, Guatemala, Loans, Social pressure

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Scanning the market

Article Abstract:

Optrox Technology Corp's engineers focuses efforts on reducing the number of parts used in their products and following a trend of simplicity of design. Optrox has concentrated its efforts on producing scanners to position itself as a world price leader. It is one of the reasons Taiwan's export position is a success.

Product information, Computer peripherals industry, Optrox Technology Corp.

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