Developing countries in need: Which characteristics appeal most to people when donating money?
AbstractA discrete choice experiment was conducted to discover the relative importance of five characteristics of developing countries, as suggested by the literature, considered by people when choosing countries to donate money to. The experiment was administered via an online survey involving almost 700 student participants (potential donors) from a New Zealand university. The most important recipient-country characteristic for participants on average is hunger and malnutrition (a weight of 0.29), followed by child mortality (0.24), quality of infrastructure (0.21), income per capita (0.18), and, least importantly, ties to New Zealand (0.09). A cluster analysis of participants' individual `part-worth utilities' representing the relative importance of the country characteristics reveals they are not strongly correlated with participants' demographic characteristics. Our findings overall indicate that to maximise the donations they receive, non-governmental aid organisations are better to focus their marketing efforts on emphasising country characteristics associated with hunger, malnutrition and child mortality than other things.
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Bibliographic InfoPaper provided by University of Otago, Department of Economics in its series Working Papers with number 1312.
Length: 35 pages
Date of creation: Sep 2013
Date of revision: Sep 2013
foreign aid; charitable giving; discrete choice experiment; conjoint analysis; PAPRIKA method;
Find related papers by JEL classification:
- A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-09-28 (All new papers)
- NEP-DCM-2013-09-28 (Discrete Choice Models)
- NEP-DEM-2013-09-28 (Demographic Economics)
- NEP-EXP-2013-09-28 (Experimental Economics)
- NEP-NPS-2013-09-28 (Nonprofit & Public Sector)
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