In this study we show that a politician’s local public good provision such as large-scale public projects funded by central government has positive impact on his reelection. This result confirms widely-held belief that hosting large-scale public projects is effective for electoral campaign. It also implies that politicians are trying to attract large-scale public projects to their own electoral districts for their political interests. Hence decision on whether to invest in a large-scale project and its location is much more likely to be affected by political interests. Ideally such a decision must be objective and based on which project and location is most effective and efficient to achieve policy goal. More importantly, it should not be based on personal interests. In order to reduce excessive competition among local governments and minimize unnecessary political influence, we suggest the following institutional changes: central government needs to (1) enhance fiscal accountability of local politicians, (2) increase cost share ratio of large-scale public projects by local government depending on project characteristics, (3) require detailed financing plan for local government’s share.