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Developing countries in need: Which characteristics appeal most to people when donating money?

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Author Info

  • Paul Hansen

    ()
    (Department of Economics, University of Otago, New Zealand)

  • Nicole Kergozou

    ()
    (Reserve Bank of New Zealand)

  • Stephen Knowles

    ()
    (Department of Economics, University of Otago, New Zealand)

  • Paul Thorsnes

    ()
    (Department of Economics, University of Otago, New Zealand)

Abstract

A 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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File URL: http://www.business.otago.ac.nz/econ/research/discussionpapers/DP_1312.pdf
File Function: First version, 2013
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Bibliographic Info

Paper provided by University of Otago, Department of Economics in its series Working Papers with number 1312.

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Length: 35 pages
Date of creation: Sep 2013
Date of revision: Sep 2013
Handle: RePEc:otg:wpaper:1312

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Keywords: foreign aid; charitable giving; discrete choice experiment; conjoint analysis; PAPRIKA method;

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  1. David Dollar & Craig Burnside, 2000. "Aid, Policies, and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 847-868, September.
  2. Alesina, Alberto & Dollar, David, 2000. " Who Gives Foreign Aid to Whom and Why?," Journal of Economic Growth, Springer, vol. 5(1), pages 33-63, March.
  3. Alvin Etang Ndip & David Fielding & Stephen Knowles, 2010. "Giving to Africa and Perceptions of Poverty," Working Papers 1008, University of Otago, Department of Economics, revised Aug 2010.
  4. Pablo Brañas Garza, 2003. "Poverty in Dictator Games: Awakening Solidarity," Economic Working Papers at Centro de Estudios Andaluces E2003/50, Centro de Estudios Andaluces.
  5. Christie Smith, 2009. "Revealing monetary policy preferences," Reserve Bank of New Zealand Discussion Paper Series DP2009/01, Reserve Bank of New Zealand.
  6. 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.
  7. Trumbull, William N & Wall, Howard J, 1994. "Estimating Aid-Allocation Criteria with Panel Data," Economic Journal, Royal Economic Society, vol. 104(425), pages 876-82, July.
  8. Simon Feeny & Matthew Clarke, 2007. "What Determines Australia's Response to Emergencies and Natural Disasters?," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 40(1), pages 24-36, 03.
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