Resource information
Rapid population growth in many
developing countries has raised concerns regarding food
security and household welfare. To understand the
consequences of population growth in a general equilibrium
setting, this paper examines the dynamics of population
density and its impacts on household outcomes. The analysis
uses panel data from Indonesia combined with district-level
demographic data. Historically, Indonesia has adapted to
land constraints through a mix of agricultural
intensification, expansion of the land frontier, and nonfarm
diversification, with public policies playing a role in
catalyzing all of these responses. In contemporary
Indonesia, the paper finds that human capital determines the
effect of increased population density on per capita
household consumption expenditure. On the one hand, the
effect of population density is positive if the average
educational attainment is high (above junior high school),
while it is negative otherwise. On the other hand, farmers
with larger holdings maintain their advantage in farming
regardless of population density. The paper concludes with
some potential lessons for African countries from
Indonesia's more successful rural development experiences.
