Transportation network and changes in urban structure: Evidence from the Jakarta Metropolitan Area

The Jakarta Metropolitan Area (JMA) has a population of 28 million, a figure which is growing relative quickly. This study examines the role of transport infrastructure in explaining the suburbanization process at the community level in JMA. Aside from population density, it also uses night light intensity as proxy for economic activity. Using population census and night light data for 2000 and 2010, and the instrumental variable (IV) strategy, we found that improvements in highway and railway access promote population growth in city suburbs and non-city suburbs, respectively confirming the process of transportation-led suburbanization. In contrast, suburbanization of night light intensity was only evident in non-city suburbs and is likely to be driven by the transportation network stock.