New Paper, The Value of Democracy: Evidence from Road Building in Kenya (forthcoming American Economic Review)
Ethnic favoritism is seen as antithetical to development. This paper provides credible quanti cation of the extent of ethnic favoritism using data on road building in Kenyan districts across the 1963-2011 period. Guided by a model it then examines whether the transition in and out of democracy under the same president constrains or exacerbates ethnic favoritism. Across the post-independence period, we find strong evidence of ethnic favoritism: districts that share the ethnicity of the president receive twice as much expenditure on roads and have five times the length of paved roads built. This favoritism disappears during periods of democracy.
Second year Berkeley Master of Development Practice (MDP) student, Kennedy Mugo from Nairobi, Kenya, sits down with Ted Miguel in his Berkeley office to discuss Africa's economic future - and how to stay young.