Open access
Date
2010Type
- Working Paper
ETH Bibliography
yes
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Abstract
Using a new dataset for 41 German non-governmental organizations (NGOs), we analyze the allocation of NGO aid across recipient countries in a Tobit regression framework. By identifying for each NGO the degree of public refinancing, we address the largely unresolved issue of whether financial dependence on the government impairs the targeting of NGO aid. It turns out that German NGOs are more active in poorer countries, while they do not complement official aid by working under difficult local conditions. Beyond a certain threshold, rising financial dependence weakens their poverty orientation and provides an incentive to engage in “easier” environments. In addition, we find that the NGOs follow the state as well as NGO peers when allocating aid. This herding behavior is, however, hardly affected by the degree of public refinancing. Show more
Permanent link
https://doi.org/10.3929/ethz-a-005974929Publication status
publishedJournal / series
KOF Working PapersVolume
Publisher
KOF Swiss Economic Institute, ETH ZurichSubject
NICHTGOUVERNEMENTALE ORGANISATIONEN + NICHTSTAATLICHE ORGANISATIONEN + NICHTREGIERUNGSORGANISATIONEN (KÖRPERSCHAFTEN); Public refinancing; DEUTSCHLAND (MITTELEUROPA). BUNDESREPUBLIK DEUTSCHLAND; NON-GOVERNMENTAL ORGANISATIONS (ORGANISATIONS); NGO aid; Aid allocation; ZWISCHENSTAATLICHE WIRTSCHAFTSHILFE; GERMANY (CENTRAL EUROPE). FEDERAL REPUBLIC OF GERMANY; INTERNATIONAL ECONOMIC AIDOrganisational unit
02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute
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ETH Bibliography
yes
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