Aid allocation by German NGOs: does the degree of official financing matter?

Using a new data set for 41 German non-governmental organisations (NGOs), we analyse the allocation of NGO aid across recipient countries in a Tobit regression framework. By identifying for each NGO the degree of official financing, we address the largely unresolved issue of whether financial depend...

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Bibliographic Details
Main Authors: Dreher, Axel (Author) , Nunnenkamp, Peter (Author) , Thiel, Susann (Author) , Thiele, Rainer (Author)
Format: Article (Journal)
Language:English
Published: November 2012
In: The world economy
Year: 2012, Volume: 35, Issue: 11, Pages: 1448-1472
ISSN:1467-9701
DOI:10.1111/j.1467-9701.2012.01455.x
Online Access:Verlag, Volltext: http://dx.doi.org/10.1111/j.1467-9701.2012.01455.x
Verlag, Volltext: https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1467-9701.2012.01455.x
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Author Notes:Axel Dreher, Peter Nunnenkamp, Susann Thiel and Rainer Thiele
Description
Summary:Using a new data set for 41 German non-governmental organisations (NGOs), we analyse the allocation of NGO aid across recipient countries in a Tobit regression framework. By identifying for each NGO the degree of official financing, 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 behaviour is, however, hardly affected by the degree of official financing.
Item Description:Gesehen am 17.12.2018
Physical Description:Online Resource
ISSN:1467-9701
DOI:10.1111/j.1467-9701.2012.01455.x