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Title:Aid allocation by German NGOs: Does the degree of public refinancing matter? PDF Logo
Authors:Dreher, Axel
Nunnenkamp, Peter
Thiel, Susann
Thiele, Rainer
Issue Date:2010
Series/Report no.:KOF working papers // KOF Swiss Economic Institute, ETH Zurich 247
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.
Subjects:NGO aid
aid allocation
public refinancing
JEL:F35
Persistent Identifier of the first edition:doi:10.3929/ethz-a-005974929
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des IfW
KOF Working Papers, KOF Konjunkturforschungsstelle, ETH Zürich

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