Foreign aid can influence election outcomes in unexpected ways. This study explores how politicians strategically claim undeserved credit for development programs funded by foreign donors, even without controlling the actual allocation of resources.
✅ Credit Claiming Strategy: We theorize that local leaders use various techniques to take ownership of foreign aid projects despite limited influence over their execution.
🔍 Subnational Evidence from Philippines: Using World Bank data and a specific development program in the Philippines, we demonstrate this phenomenon's real-world impact on electoral politics.
📊 Findings: Credit claiming emerges as a significant factor explaining how political benefits can persist even when projects are designed to minimize misuse.
This research reveals an important mechanism by which foreign aid inflows affect local political dynamics.
