Please use this identifier to cite or link to this item:
Nunnenkamp, Peter
Öhler, Hannes
Schwörer, Tillmann
Year of Publication: 
Series/Report no.: 
Kiel Working Paper 1716
The non-distribution constraint of non-governmental organizations (NGOs) would be harder, and financiers as well as recipients could expect more charitable output from them, if less efficient NGOs were squeezed out of international development cooperation. We employ Probit and complementary log-log estimations to analyze which factors determine the probability of 'market' exit for almost 900 US based NGOs with overseas aid activities during the 1984-2003 period. Apart from their size and experience, we consider administrative overheads as an important aspect of NGO efficiency. We also account for other dimensions of NGO heterogeneity, including the importance of official refinancing. We find that larger administrative overheads increase the probability of exit for secular NGOs, though not for religious NGOs. Furthermore, we detect complex non-linear effects once the interactions between administrative overheads and official refinancing are taken into account.
Non-governmental organizations
foreign aid
NGO characteristics
market exit
Probit models
complementary log-log
Document Type: 
Working Paper

Files in This Item:
326.72 kB

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.