Does Religiosity and Social Trust Promote Community Participation in Development? Evidence from Indonesia

Abstract

This paper investigates the association of religiosity and trust to community participation or volunteering in development. Social trust is measured in several 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 perform better, government policy could stimulate output faster, and many more. Utilizing Indonesia Family Life Survey (IFLS) wave 2014 this study finds 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.