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The Economics of Non-Governmental Organisations

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Author Info
R. Hopkins
C.D. Scott
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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Paper provided by Suntory and Toyota International Centres for Economics and Related Disciplines, LSE in its series STICERD - Development Economics 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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Related research
Keywords: miroeconomic analyses of economic development; formal and informal sectors; non-governmental organisations; institutional arrangements; non-profit institutions; altruism;

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  1. repec:cup:cbooks:9780521477185 is not listed on IDEAS
  2. 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. [Downloadable!] (restricted)
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Cited by:
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  1. Abigail Barr & Marcel Fafchamps & Trudy Owens, 2004. "The Resources and Governance of Non-Governmental Organizations in Uganda," Development and Comp Systems 0409047, EconWPA. [Downloadable!]
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This page was last updated on 2009-12-15.


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