The ethnically and racially uneven role of water infrastructure spending in rural economic development

Here we test the hypothesis that local government spending on water infrastructure is associated with higher levels of economic development, and the hypothesis that this association is unequal between ethnoracial groups. Using data from the State and Local Government Finance Surveys and the US Census Bureau, we estimate a series of county-level spatial econometric models from 1980 to 2015. Our results support our hypotheses, with most beneficial associations taking 8 years to become evident. Furthermore, through the use of interactional models, we show that this effect is ethnically and racially uneven, with the benefits of investment decreasing as counties become more Latino/a and non-Latino/a Indigenous, and either increasing or decreasing as counties become more non-Latino/a Black, dependent on the specific outcome. Our results suggest that continued investment in rural water infrastructure has the potential to have wide-ranging, but possibly uneven, economic benefits for residents. Local government investment in water infrastructure is associated with rural economic development in the United States. Through the use of interactional models, the economic benefits are shown to be ethnically and racially uneven.