IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v188y2025ics0305750x24003784.html
   My bibliography  Save this article

Targeting coethnic voters, elites, or both? Evidence from aid allocation in Malawi

Author

Listed:
  • Lee, Dongil

Abstract

Top leaders in Africa favor their coethnic voters when allocating government resources. However, a growing literature on political elites implies the importance of those actors for mobilizing political support for top leaders—hence, the need for presidents to target elites. Do top leaders target coethnic voters, coethnic elites, or both? To address the question, I use the difference-in-differences estimation drawing upon foreign aid allocation in Malawi during 1999-2010. The results show that controlling for the share of their coethnic voters, constituencies represented by the incumbent president’s coethnic Members of Parliament (MPs) receive 13%–75% more aid disbursement per capita than those represented by non-coethnic MPs. This suggests that leaders target coethnic elites in addition to coethnic voters. I also find that this favoritism is due to coethnic MPs’ electoral mobilization capacity and their personal loyalty to the president. This study highlights the importance of coalition building centered around coethnic elites in multiethnic countries.

Suggested Citation

  • Lee, Dongil, 2025. "Targeting coethnic voters, elites, or both? Evidence from aid allocation in Malawi," World Development, Elsevier, vol. 188(C).
    • Handle: RePEc:eee:wdevel:v:188:y:2025:i:c:s0305750x24003784
    DOI: 10.1016/j.worlddev.2024.106907
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X24003784
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.worlddev.2024.106907?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Clément de Chaisemartin & Xavier D'Haultfœuille, 2020. "Two-Way Fixed Effects Estimators with Heterogeneous Treatment Effects," American Economic Review, American Economic Association, vol. 110(9), pages 2964-2996, September.
    2. Posner,Daniel N., 2005. "Institutions and Ethnic Politics in Africa," Cambridge Books, Cambridge University Press, number 9780521541794, June.
    3. Kasara, Kimuli, 2007. "Tax Me If You Can: Ethnic Geography, Democracy, and the Taxation of Agriculture in Africa," American Political Science Review, Cambridge University Press, vol. 101(1), pages 159-172, February.
    4. Robin Burgess & Remi Jedwab & Edward Miguel & Ameet Morjaria & Gerard Padró i Miquel, 2015. "The Value of Democracy: Evidence from Road Building in Kenya," American Economic Review, American Economic Association, vol. 105(6), pages 1817-1851, June.
    5. Jørgen Juel Andersen & Niels Johannesen & Bob Rijkers, 2022. "Elite Capture of Foreign Aid: Evidence from Offshore Bank Accounts," Journal of Political Economy, University of Chicago Press, vol. 130(2), pages 388-425.
    6. Abhit Bhandari & Horacio Larreguy & John Marshall, 2021. "Able and Mostly Willing: An Empirical Anatomy of Information's Effect on Voter‐Driven Accountability in Senegal," Post-Print hal-03354024, HAL.
    7. Beiser-McGrath, Janina & Müller-Crepon, Carl & Pengl, Yannick I., 2021. "Who Benefits? How Local Ethnic Demography Shapes Political Favoritism in Africa," British Journal of Political Science, Cambridge University Press, vol. 51(4), pages 1582-1600, October.
    8. Dynes, Adam M. & Huber, Gregory A., 2015. "Partisanship and the Allocation of Federal Spending: Do Same-Party Legislators or Voters Benefit from Shared Party Affiliation with the President and House Majority?," American Political Science Review, Cambridge University Press, vol. 109(1), pages 172-186, February.
    9. Isaksson, Ann-Sofie & Kotsadam, Andreas, 2018. "Chinese aid and local corruption," Journal of Public Economics, Elsevier, vol. 159(C), pages 146-159.
    10. Bruce Bueno De Mesquita & Alastair Smith, 2010. "Leader Survival, Revolutions, and the Nature of Government Finance," American Journal of Political Science, John Wiley & Sons, vol. 54(4), pages 936-950, October.
    11. Clément de Chaisemartin & Xavier D’Haultfœuille, 2023. "Two-way fixed effects and differences-in-differences with heterogeneous treatment effects: a survey," The Econometrics Journal, Royal Economic Society, vol. 26(3), pages 1-30.
    12. Franck, Raphaël & Rainer, Ilia, 2012. "Does the Leader's Ethnicity Matter? Ethnic Favoritism, Education, and Health in Sub-Saharan Africa," American Political Science Review, Cambridge University Press, vol. 106(2), pages 294-325, May.
    13. Cesi Cruz & Christina J. Schneider, 2017. "Foreign Aid and Undeserved Credit Claiming," American Journal of Political Science, John Wiley & Sons, vol. 61(2), pages 396-408, April.
    14. De Luca, Giacomo & Hodler, Roland & Raschky, Paul A. & Valsecchi, Michele, 2018. "Ethnic favoritism: An axiom of politics?," Journal of Development Economics, Elsevier, vol. 132(C), pages 115-129.
    15. Scott, James C., 1972. "Patron-Client Politics and Political Change in Southeast Asia," American Political Science Review, Cambridge University Press, vol. 66(1), pages 91-113, March.
    16. Patrick Francois & Ilia Rainer & Francesco Trebbi, 2015. "How Is Power Shared in Africa?," Econometrica, Econometric Society, vol. 83, pages 465-503, March.
    17. Haass, Felix & Ottmann, Martin, 2021. "Rebels, Revenue and Redistribution: The Political Geography of Post-Conflict Power-Sharing in Africa," British Journal of Political Science, Cambridge University Press, vol. 51(3), pages 981-1001, July.
    18. Anjali Thomas Bohlken, 2018. "Targeting Ordinary Voters or Political Elites? Why Pork Is Distributed Along Partisan Lines in India," American Journal of Political Science, John Wiley & Sons, vol. 62(4), pages 796-812, October.
    19. Maffioli, Elisa M., 2021. "The political economy of health epidemics: Evidence from the Ebola outbreak," Journal of Development Economics, Elsevier, vol. 151(C).
    20. Kate Baldwin, 2013. "Why Vote with the Chief? Political Connections and Public Goods Provision in Zambia," American Journal of Political Science, John Wiley & Sons, vol. 57(4), pages 794-809, October.
    21. Harris, J. Andrew & Posner, Daniel N., 2022. "Does decentralization encourage pro-poor targeting? Evidence from Kenya’s constituencies development fund," World Development, Elsevier, vol. 155(C).
    22. Abman, Ryan & Carney, Conor, 2020. "Land rights, agricultural productivity, and deforestation," Food Policy, Elsevier, vol. 94(C).
    23. Knutsen, Tora & Kotsadam, Andreas, 2020. "The political economy of aid allocation: Aid and incumbency at the local level in Sub Saharan Africa," World Development, Elsevier, vol. 127(C).
    24. Roland Hodler & Paul A. Raschky, 2014. "Regional Favoritism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(2), pages 995-1033.
    25. Nyrup, Jacob & Bramwell, Stuart, 2020. "Who Governs? A New Global Dataset on Members of Cabinets," American Political Science Review, Cambridge University Press, vol. 114(4), pages 1366-1374, November.
    26. Harris, J. Andrew & Posner, Daniel N., 2019. "(Under What Conditions) Do Politicians Reward Their Supporters? Evidence from Kenya’s Constituencies Development Fund," American Political Science Review, Cambridge University Press, vol. 113(1), pages 123-139, February.
    27. Ichino, Nahomi & Nathan, Noah L., 2013. "Crossing the Line: Local Ethnic Geography and Voting in Ghana," American Political Science Review, Cambridge University Press, vol. 107(2), pages 344-361, May.
    28. Posner,Daniel N., 2005. "Institutions and Ethnic Politics in Africa," Cambridge Books, Cambridge University Press, number 9780521833981, June.
    29. Briggs, Ryan C., 2014. "Aiding and Abetting: Project Aid and Ethnic Politics in Kenya," World Development, Elsevier, vol. 64(C), pages 194-205.
    30. Roth, Jonathan & Sant’Anna, Pedro H.C. & Bilinski, Alyssa & Poe, John, 2023. "What’s trending in difference-in-differences? A synthesis of the recent econometrics literature," Journal of Econometrics, Elsevier, vol. 235(2), pages 2218-2244.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Asatryan, Zareh & Baskaran, Thushyanthan & Birkholz, Carlo & Gomtsyan, David, 2021. "Favoritism and firms: Micro evidence and macro implications," ZEW Discussion Papers 21-031, ZEW - Leibniz Centre for European Economic Research.
    2. Widmer, Philine & Zurlinden, Noémie, 2022. "Ministers Engage in Favoritism Too," Journal of Public Economics, Elsevier, vol. 213(C).
    3. Bluhm, Richard & Hodler, Roland & Schaudt, Paul, 2021. "Local majorities: How administrative divisions shape comparative development," Economics Working Paper Series 2110, University of St. Gallen, School of Economics and Political Science.
    4. Fuchs, Andreas & Dreher, Axel & Hodler, Roland & Parks, Bradley C. & Raschky, Paul, 2015. "Aid on Demand: African Leaders and the Geography of China s Foreign Assistance," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112838, Verein für Socialpolitik / German Economic Association.
    5. Dreher, Axel & Fuchs, Andreas & Hodler, Roland & Parks, Bradley C. & Raschky, Paul A. & Tierney, Michael J., 2019. "African leaders and the geography of China's foreign assistance," Journal of Development Economics, Elsevier, vol. 140(C), pages 44-71.
    6. De Luca, Giacomo & Hodler, Roland & Raschky, Paul A. & Valsecchi, Michele, 2018. "Ethnic favoritism: An axiom of politics?," Journal of Development Economics, Elsevier, vol. 132(C), pages 115-129.
    7. Anaxagorou, Christiana & Efthyvoulou, Georgios & Sarantides, Vassilis, 2020. "Electoral motives and the subnational allocation of foreign aid in sub-Saharan Africa," European Economic Review, Elsevier, vol. 127(C).
    8. Baldwin, Kate & Karlan, Dean & Udry, Christopher & Appiah, Ernest, 2023. "How political insiders lose out when international aid underperforms: Evidence from a participatory development experiment in Ghana," World Development, Elsevier, vol. 169(C).
    9. Ahlerup, Pelle & Sundström, Aksel & Jagers, Sverker C. & Sjöstedt, Martin, 2024. "Climate shocks, regional favoritism and trust in leaders: Insights from droughts in Africa," World Development, Elsevier, vol. 183(C).
    10. Andrew Dickens, 2017. "Ethnolinguistic Favoritism in African Politics," Working Papers 1702, Brock University, Department of Economics.
    11. Bandyopadhyay, Sanghamitra & Green, Elliott, 2025. "Explaining ethno-regional favouritism in Sub-Saharan Africa," World Development, Elsevier, vol. 188(C).
    12. Amodio, Francesco & Chiovelli, Giorgio & Munson, Dylan, 2022. "Pre-colonial ethnic institutions and party politics in Africa," Journal of Comparative Economics, Elsevier, vol. 50(4), pages 969-980.
    13. Elena Perra, 2022. "Road to Division: Ethnic Favouritism in the Provision of Road Infrastructure in Ethiopia," Working Papers - Economics wp2022_01.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    14. Robin Burgess & Remi Jedwab & Edward Miguel & Ameet Morjaria & Gerard Padró i Miquel, 2015. "The Value of Democracy: Evidence from Road Building in Kenya," American Economic Review, American Economic Association, vol. 105(6), pages 1817-1851, June.
    15. Pierre André & Paul Maarek & Fatoumata Tapo, 2018. "Ethnic Favoritism: Winner Takes All or Power Sharing? Evidence from school constructions in Benin," THEMA Working Papers 2018-03, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    16. Stelios Michalopoulos & Elias Papaioannou, 2020. "Historical Legacies and African Development," Journal of Economic Literature, American Economic Association, vol. 58(1), pages 53-128, March.
    17. Francesco Amodio & Giorgio Chiovelli & Sebastian Hohmann, 2024. "The Employment Effects of Ethnic Politics," American Economic Journal: Applied Economics, American Economic Association, vol. 16(2), pages 456-491, April.
    18. Dupraz, Yannick & Simson, Rebecca, 2024. "Elite persistence in Sierra Leone: What can names tell us?," Journal of Development Economics, Elsevier, vol. 171(C).
    19. Ma, Guangrong & Qi, Qingyuan & Liu, Mengxin, 2023. "A lack of nostalgia: Hometown favoritism and allocation of intergovernmental transfer in China," China Economic Review, Elsevier, vol. 81(C).
    20. Bluhm, Richard & Thomsson, Kaj, 2020. "Holding on? Ethnic divisions, political institutions and the duration of economic declines," Journal of Development Economics, Elsevier, vol. 144(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:188:y:2025:i:c:s0305750x24003784. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.