Authors : O.I.Y. Ajani and G.A. Tijani
Abstract: This study examined, the role of social capital in access to micro credit in Ekiti State. Multi-stage stratified random sampling procedure was used to collect data from 116 households in the study area. The analytical methods used in this study include Descriptive and Regression analyses (Probit regression method). Results revealed that aggregate social capital index positively affects the probability of members of networks obtaining micro credit at 1% significant level and the marginal effect shows that increasing social capital by a unit will lead to 0.22% in probability of members of associations obtaining micro credit. Disaggregating the social capital index, the variables that significantly influence probability of obtaining micro credit includes memberships in associations, cash and labour contributions by members to various associations. Nevertheless, the study supports findings that in addition to information and other benefits derived from networks, it can be a source of obtaining credit. The study concluded that belonging to networks or associations improves the probability of obtaining credit for members, which can be channeled towards improving their livelihood activities.
O.I.Y. Ajani and G.A. Tijani, 2009. The Role of Social Capital in Access to Micro Credit in Ekiti State, Nigeria. Pakistan Journal of Social Sciences, 6: 125-132.