Does Religiosity and Social Trust Promote Community Participation in Development? Evidence from Indonesia
Ni Made Sukartini, Achmad Solihin and M. Khoerul Mubin
Department of Economics, Faculty of Economics, Airlangga University
Abstract
This paper investigates the association of religiosity on social capital, especially social trust. Social trust is measured in eight indicators, is an important aspect of development process, since social trust related to many development outcomes, such as growth, democratic stability as well as subjective well- being. In economic terms, when people trust each other, transaction cost can be reduced, organization can performed better, government perform better and many more. Utilizing Indonesia Family Life Survey (IFLS) wave 2014 this study find the following results. Firstly, social trust closely associated with individual characteristics. Maturity, better educational and income level improve individual trust and individual participation in community activities. Secondly, individual subjective report about religiosity strongly associated with willingness to participate in various community activities. Policy relevant with this finding it is important to promote tolerance and religiosity, as these aspects can improve social trust. Social trust closely associates with more participation in community activities for accumulating public services and public goods. As more public services and public goods are available, nationally better welfare can be promoted
Keywords: IFLS, religiosity, trust, social capital
Topic: Sustainable Development