Investigating the Development and Effects of Social Capital through Participation in Group-based Microcredit Programme in Peninsular Malaysia

The objective of this study is to investigate the development of social capital through participating in a group-based microcredit programme as well as its economic effects in Peninsular Malaysia. Findings indicate that the length of participation and organizational profile have a positive effect on the development of formal bonding social capital. This study also demonstrates the positive association between social capital with household income and productive assets. Microcredit programmes should therefore emphasize on building social capital through providing a dynamic and supportive environment to advance the level of cooperation among the low-income women.JEL: C31, D71, Z13