When NGOs Go Global: Competition on International Markets for Development Donations
AbstractWhy many large non-governmental organizations (NGOs) are becoming multinational entities? What are the welfare implications of this integration of markets for development donations? To answer these questions, we build a simple two-country model with horizontally differentiated NGOs competing through fundraising effort. We find that NGOs become multinational if the economies of scale in fundraising are sufficiently large. In that case, national NGOs in the smaller country disappear, while some national NGOs remain in the larger country only if the difference in the countries' size is large enough. Social welfare is higher in the regime with multinationals than under autarky.
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.
Bibliographic InfoPaper provided by Collegio Carlo Alberto in its series Carlo Alberto Notebooks with number 93.
Length: 39 pages
Date of creation: 2008
Date of revision:
non-governmental organizations; charitable giving; globalization; multinational firms;
Other versions of this item:
- Aldashev, Gani & Verdier, Thierry, 2009. "When NGOs go global: Competition on international markets for development donations," Journal of International Economics, Elsevier, vol. 79(2), pages 198-210, November.
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Grossman, Gene M & Shapiro, Carl, 1984. "Informative Advertising with Differentiated Products," Review of Economic Studies, Wiley Blackwell, vol. 51(1), pages 63-81, January.
- Eric Werker & Faisal Z. Ahmed, 2008. "What Do Nongovernmental Organizations Do?," Journal of Economic Perspectives, American Economic Association, vol. 22(2), pages 73-92, Spring.
- Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-58, December.
- Anna Fruttero & Varun Gauri, 2005. "The Strategic Choices of NGOs: Location Decisions in Rural Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 41(5), pages 759-787.
- Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
- James Andreoni & A. Abigail Payne, 2003. "Do Government Grants to Private Charities Crowd Out Giving or Fund-raising?," American Economic Review, American Economic Association, vol. 93(3), pages 792-812, June.
- Lionel Fontagné & Michela Limardi, 2011. "The Outcome of NGOs' Activism in Developing Countries under Visibility Constraint," PSE Working Papers halshs-00630096, HAL.
- Gani Aldashev & Marco Marini & Thierry Verdier, 2014.
"Brothers in Alms? Coordination Betwen Nonprofits on Markets for Donations,"
1406, University of Namur, Department of Economics.
- Gani Aldashev & Marco Marini & Thierry Verdier, 2013. "Brothers in alms? coordination between nonprofits on markets for donations," Carlo Alberto Notebooks 293, Collegio Carlo Alberto.
- Gani Aldashev & Marco A. Marini & Thierry Verdier, 2014. "Brothers in alms ? Coordination between nonprofits on markets for donations," DIAG Technical Reports 2014-02, Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza".
- repec:aeg:report:2014-2 is not listed on IDEAS
- Navarra, Cecilia & Vallino, Elena, 2014. "Who had the idea to build up a village organization? Some evidence from Senegal and Burkina Faso," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201407, University of Turin.
- repec:hal:wpaper:halshs-00630096 is not listed on IDEAS
- Michela Limardi, 2011. "The Ambiguous Outcome of NGOsâ€™ Activism in Developing Countries," ERSA conference papers ersa11p555, European Regional Science Association.
- Gani Aldashev & Michela Limardi & Thierry Verdier, 2013. "Watchdogs of the Invisible Hand: NGO Monitoring, Corporate Social Responsibility, and Industry Equilibrium," Working Papers 1404, University of Namur, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Giovanni Bert).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.