Jurnal Ekonomi Pembangunan
Vol 20, No 2 (2022): Jurnal Ekonomi Pembangunan

Revisiting the Impact of Density on Social Capital: A Study Case in the Capital City of Indonesia

Usep Nugraha (Statistics Indonesia-Badan Pusat Statistik)
Rus’an Nasrudin (Department of Economics, Faculty of Economics and Business, Universitas Indonesia)



Article Info

Publish Date
15 Jan 2023

Abstract

Density is an important indicator closely related to the rate of urbanisation in cities. Density alters social capital, yet the directions of the association remain an open empirical investigation. This study aims to analyse how density and social capital are related in Jakarta, the capital, and the most populous city in Indonesia. Utilising a simple regression and an entropy balance approach to address the selection issue, this study finds that an increase in density of 10 thousand inhabitants per square kilometre is associated with a 2% higher possibility of societies having high social capital. The result is also robust using another definition of social capital and transformation of density variable. A policy recommendation that can be taken based on this study’s results is that the government can design dense urban planning as a model of sustainable urban design, particularly the sustainability in social aspects.

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Journal Info

Abbrev

jep

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Ekonomi Pembangunan is a peer-reviewed journal that provides a forum for scientific works pertaining to Development Economics. Published twice in a year (June and December). This Journal has p-ISSN 1829-5843, and e-ISSN 2685-0788. This journal was first published since June 2003 by the ...