Back to top

Public Infrastructure Provision and Ethnic Favouritism: Evidence from South Africa

Leone Walters, Manoel Bittencourt and Carolyn Chisadza
Publication date
July 2019
Does ethnic favouritism in administrative governments affect public infrastructure provision? While previous literature has studied the effects of ethnic favouritism on economic growth and development determinants, there has been limited empirical evidence on ethnic favouritism in public infrastructure provision, particularly in South Africa. We study the effects of ethnic favouritism on provision of water and electricity infrastructure. Using municipal-level data for 52 district municipalities from 1996 to 2016, we nd that coethnic municipalities are associated with higher growth in infrastructure relative to non-coethnic municipalities. The results remain robust to time and municipal xed eects, as well as dynamic specications. Additionally, we construct a counterfactual scenario to conrm our results.
Publication PDF
Series title
Working paper 787
Economics of Transition and Institutional Change
JEL classifications