Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/279319 
Year of Publication: 
2023
Series/Report no.: 
CESifo Working Paper No. 10568
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We examine the effect of inter-group fiscal competition on within-group violent conflict. Using a triple difference design, we exploit exogenous variation in the degree to which villages in sub-districts compete for public funds. We find that higher competition between villages reduces conflict but only up to moderate levels of competition. The conflict-reducing effects of competition are largest in the most ethnically fractionalized and segregated villages and exist regardless of the eventual outcome of the competition. Our results are consistent with external competition favoring coordination within otherwise divided communities and boosting village identity relative to ethnic identity.
Subjects: 
community-driven development
competition
conflict
JEL: 
D74
O12
H40
Document Type: 
Working Paper
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