Colonial legacy and land market formality

Mariaflavia Harari and Maisy Wong

Journal of Urban Economics, 2025, vol. 149, issue C

Abstract: We study the role of Dutch colonial institutions on urban development for the megacity of Jakarta, Indonesia. Using historical maps of Dutch settlements and a rich granular database, we implement a boundary discontinuity design comparing locations on either side of Dutch boundaries. We find that historical Dutch areas today have significantly lower parcel density, are more likely to have formally registered parcels, and have more regular parcel layout, pointing to the importance of planning and cadastral mapping. Dutch settlements are also more likely to appear formal, as per a photographic index that ranks the appearance of neighborhoods. We highlight the role of land market institutions over alternative channels, such as direct Dutch investments or natural advantage.

Keywords: Urbanization; Property rights; Informality; Institutions (search for similar items in EconPapers)
JEL-codes: R14 R31 R48 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:juecon:v:149:y:2025:i:c:s0094119025000543

DOI: 10.1016/j.jue.2025.103789

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