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Does NGO Aid Go to the Poor? Empirical Evidence from Europe

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  • Gilles Nancy
  • Boriana Yontcheva
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    Abstract

    This paper studies the aid allocation of European nongovernmental organizations (NGOs). Once population is controlled for, poverty consistently appears as the main worldwide determinant of NGO aid allocation. NGOs do not respond to strategic considerations. Their funding source does not seem to exert a great influence on their aid allocation decision. We also find differences across regions. Militarization and the political nature of the regime of the recipient country affect aid allocation in the Middle East. Life expectancy influences aid allocation in countries in the Western Hemisphere and the Middle East.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 06/39.

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    Length: 23
    Date of creation: 01 Feb 2006
    Date of revision:
    Handle: RePEc:imf:imfwpa:06/39

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    References

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    1. Mick Howes, 1997. "NGOs AND THE INSTITUTIONAL DEVELOPMENT OF MEMBERSHIP ORGANIZATIONS: THE EVIDENCE FROM SIX CASES," Journal of International Development, John Wiley & Sons, Ltd., vol. 9(4), pages 597-604.
    2. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    3. Collier, Paul & Dollar, David, 1999. "Aid allocation and poverty reduction," Policy Research Working Paper Series 2041, The World Bank.
    4. Jack, William, 2001. "Public policy toward nongovernmental organizations in developing countries," Policy Research Working Paper Series 2639, The World Bank.
    5. Alberto Alesina & David Dollar, 1998. "Who Gives Foreign Aid to Whom and Why?," NBER Working Papers 6612, National Bureau of Economic Research, Inc.
    6. Frey, Bruno S. & Schneider, Friedrich, 1986. "Competing models of international lending activity," Journal of Development Economics, Elsevier, vol. 20(2), pages 225-245, March.
    7. Meyer, Carrie A., 1995. "Opportunism and NGOs: Entrepreneurship and green north-south transfers," World Development, Elsevier, vol. 23(8), pages 1277-1289, August.
    8. Simon Feeny & Mark McGillivray, 2003. "Aid and public sector borrowing in developing countries," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(8), pages 989-998.
    9. Alberto Alesina & Beatrice Weder, 1999. "Do Corrupt Governments Receive Less Foreign Aid?," NBER Working Papers 7108, National Bureau of Economic Research, Inc.
    10. Anna Fruttero & Varun Gauri, 2003. "Location decisions and nongovernmental organization motivation : evidence from rural Bangladesh," Policy Research Working Paper Series 3176, The World Bank.
    11. Rick Davies, 1997. "Donor Information Demands And Ngo Institutional Development," Journal of International Development, John Wiley & Sons, Ltd., vol. 9(4), pages 613-620.
    12. Richard Blundell & Steve Bond, 1999. "GMM estimation with persistent panel data: an application to production functions," IFS Working Papers W99/04, Institute for Fiscal Studies.
    13. Dudley, Leonard & Montmarquette, Claude, 1976. "A Model of the Supply of Bilateral Foreign Aid," American Economic Review, American Economic Association, vol. 66(1), pages 132-42, March.
    14. Steve Bond, 2002. "Dynamic panel data models: a guide to microdata methods and practice," CeMMAP working papers CWP09/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    15. Sarah Lister, 2001. "The consultation practice of Northern NGOs: a study of British organizations in Guatemala," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(7), pages 1071-1082.
    16. Gounder, Rukmani, 1994. "Empirical results of aid motivations: Australia's bilateral aid program," World Development, Elsevier, vol. 22(1), pages 99-113, January.
    17. Janet G. Townsend & Gina Porter & Emma Mawdsley, 2002. "The role of the transnational community of non-government organizations: governance or poverty reduction?," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(6), pages 829-839.
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    Cited by:
    1. Axel Dreher & Peter Nunnenkamp & Hannes Öhler & Johannes Weisser, 2009. "Acting Autonomously or Mimicking the State and Peers? A Panel Tobit Analysis of Financial Dependence and Aid Allocation by Swiss NGOs," CESifo Working Paper Series 2617, CESifo Group Munich.
    2. Raschky, Paul A. & Schwindt, Manijeh, 2012. "On the channel and type of aid: The case of international disaster assistance," European Journal of Political Economy, Elsevier, vol. 28(1), pages 119-131.
    3. Axel Dreher & Peter Nunnenkamp & Susann Thiel & Rainer Thiele, 2010. "Aid Allocation by German NGOs: Does the Degree of Public Refinancing Matter?," KOF Working papers 10-247, KOF Swiss Economic Institute, ETH Zurich.
    4. Pérouse de Montclos, Marc-Antoine, 2012. "Humanitarian action in developing countries: Who evaluates who?," Evaluation and Program Planning, Elsevier, vol. 35(1), pages 154-160.
    5. Peter Nunnenkamp & Janina Weingarth & Johannes Weisser, 2008. "Is NGO Aid Not So Different After All? Comparing the Allocation of Swiss Aid by Private and Official Donors," Kiel Working Papers 1405, Kiel Institute for the World Economy.

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