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Public infrastructure provision and ethnic favouritism: Evidence from South Africa

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  • Leoné Walters
  • Manoel Bittencourt
  • Carolyn Chisadza

Abstract

Does coethnicity with the President affect public infrastructure provision in South Africa? Using municipal‐level data for 52 district municipalities from 1996 to 2016, we find that municipalities coethnic with the President are associated with higher water infrastructure provision relative to non‐coethnic municipalities. Taking into account various political considerations, results show that ethnic favouritism occurs due to ethnic altruism. Our findings remain robust to different specifications of coethnicity thresholds and are applicable to electricity infrastructure provision. Results suggest that in order to minimise ethnic favouritism, politically independent institutions should oversee the allocation of funding and provision of infrastructure.

Suggested Citation

  • Leoné Walters & Manoel Bittencourt & Carolyn Chisadza, 2023. "Public infrastructure provision and ethnic favouritism: Evidence from South Africa," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 31(1), pages 33-65, January.
    • Handle: RePEc:wly:ectrin:v:31:y:2023:i:1:p:33-65
    DOI: 10.1111/ecot.12325
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    Cited by:

    1. 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.

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    More about this item

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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