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The Economics of Non-Governmental Organisations

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  • R. Hopkins
  • C.D. Scott
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    Abstract

    The purpose of this paper is to identify the organisational comparative advantage of NGOs, and to develop a model which explains the set of circumstances uder which they emerge and dominate other types of firms. It is argued that the potential superiority of NGOs derives from two features: (1) the creation of an institutional environment within the firm which selectively attracts altruists, who have a lower supply price of effective labour than egotists, and (2) the ability to develop efficient technologies for converting the relevatory and productive effort of their staff into local outputs which are highly valued by the target group of beneficiaries.

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    File URL: http://sticerd.lse.ac.uk/dps/de/dedps15.pdf
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    Bibliographic Info

    Paper provided by Suntory and Toyota International Centres for Economics and Related Disciplines, LSE in its series STICERD - Development Economics Papers - From 2008 this series has been superseded by Economic Organisation and Public Policy Discussion Papers with number 15.

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    Date of creation: May 1999
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    Handle: RePEc:cep:stidep:15

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    Web page: http://sticerd.lse.ac.uk/_new/publications/default.asp

    Related research

    Keywords: miroeconomic analyses of economic development; formal and informal sectors; non-governmental organisations; institutional arrangements; non-profit institutions; altruism;

    References

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    1. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-77, June.
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    Cited by:
    1. Abigail Barr & Marcel Fafchamps, 2004. "The Resources and Governance of Non-Governmental Organizations in Uganda," Economics Series Working Papers WPS/2004-06, University of Oxford, Department of Economics.
    2. Barr, Abigail & Fafchamps, Marcel & Owens, Trudy, 2005. "The governance of non-governmental organizations in Uganda," World Development, Elsevier, vol. 33(4), pages 657-679, April.

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