Did Industrialization Destroy Social Capital in Indonesia?

Edward Miguel, Paul Gertler and David Levine

Development and Comp Systems from University Library of Munich, Germany

Abstract: This paper examines the effect of industrialization on social capital in Indonesia during 1985 to 1997 using repeated cross-sections of nationally representative surveys. We analyze a rich set of social capital measures including multiple measures of voluntary associational activity, levels of trust and informal cooperation, and family outcomes. There are three main findings. First, districts that experienced rapid industrialization showed significant increases in most social capital measures. Second, districts that neighbor rapidly industrializing areas exhibited high rates of out-migration, significantly fewer community credit cooperatives, and a reduction in "mutual cooperation" as assessed by village elders. Finally, initial social capital in a district did not predict subsequent industrial development. We present a model of social capital investment and migration consistent with these patterns. The empirical findings challenge existing results in the social capital literature, and may have implications for social instability in Indonesia since 1997.

JEL-codes: H41 O14 O15 O53 (search for similar items in EconPapers)
Pages: 65 pages
Date: 2004-07-07
New Economics Papers: this item is included in nep-dev, nep-ltv and nep-sea
Note: 65 pages
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Related works:
Working Paper: Did Industrialization Destroy Social Capital in Indonesia? (2003)
Working Paper: Did Industrialization Destroy Social Capital in Indonesia? (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpdc:0407006

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