Financial Dependence and Aid Allocation by Swiss NGOs: A Panel Tobit Analysis
AbstractAid by nongovernmental organizations (NGOs) is still widely believed to be superior to official development assistance (ODA). However, the incentives of NGOs to excel and target aid to the poor and deserving are increasingly disputed. We contribute to the emerging literature on the allocation of NGO aid by performing panel Tobit estimations for Swiss NGOs. We cover the allocation of both self-financed and officially cofinanced aid for a large panel of NGOs and recipient countries. Furthermore, we offer new insights by classifying each NGO according to its financing structure and by interacting financial dependence with measures of need and merit of recipients as well as aid from other donors. It turns out that the allocation of NGO aid is much in line with that of ODA. This applies particularly to officially refinanced NGOs. Moreover, NGOs tend to locate where their peers are active. However, the poverty orientation of NGOs and their incentives to engage in difficult environments are independent of the degree of official refinancing. The allocation of self-financed aid differs in several important respects from the allocation of officially cofinanced aid.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by University of Chicago Press in its journal Economic Development and Cultural Change.
Volume (Year): 60 (2012)
Issue (Month): 4 ()
Pages: 829 - 867
Contact details of provider:
Web page: http://www.journals.uchicago.edu/EDCC/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Peter Nunnenkamp & Hannes Öhler & Tillmann Schwörer, 2011.
"US based NGOs in International Development Cooperation: Survival of the Fittest?,"
Courant Research Centre: Poverty, Equity and Growth - Discussion Papers
83, Courant Research Centre PEG.
- Peter Nunnenkamp & Hannes Öhler & Tillmann Schwörer, 2011. "US based NGOs in International Development Cooperation: Survival of the Fittest?," DEGIT Conference Papers c016_046, DEGIT, Dynamics, Economic Growth, and International Trade.
- Peter Nunnenkamp & Hannes Öhler & Tillmann Schwörer, 2011. "US based NGOs in International Development Cooperation: Survival of the Fittest?," Kiel Working Papers 1717, Kiel Institute for the World Economy.
- Nunnenkamp, Peter & Öhler, Hannes & Schwörer, Tillmann, 2013. "US based NGOs in International Development: Financial and Economic Determinants of Survival," World Development, Elsevier, vol. 46(C), pages 45-65.
- Andrea Filippo Presbitero, 2013. "Aid and Vulnerability," Mo.Fi.R. Working Papers 88, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division).
If references are entirely missing, you can add them using this form.