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Does NGO Presence Decrease Government Spending? A Look at Municipal Spending on Social Services in Brazil

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  • Torpey-Saboe, Nichole

Abstract

Are NGOs becoming substitutes for government? In particular, as many NGOs have missions related to social outcomes such as education or health, what is their role in regard to government provision of these social goods? I examine municipal-level data from Brazil in order to explore the relationship between NGOs and social spending. I find that municipalities with higher concentrations of NGOs tend to have lower levels of social spending, except in areas of high poverty. This implies that NGOs may be crowding out the government in terms of social spending, at least in lower poverty municipalities.

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  • Torpey-Saboe, Nichole, 2015. "Does NGO Presence Decrease Government Spending? A Look at Municipal Spending on Social Services in Brazil," World Development, Elsevier, vol. 74(C), pages 479-488.
    • Handle: RePEc:eee:wdevel:v:74:y:2015:i:c:p:479-488
    DOI: 10.1016/j.worlddev.2015.06.001
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    References listed on IDEAS

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    2. Baldwin, Kate & Karlan, Dean & Udry, Christopher & Appiah, Ernest, 2023. "How political insiders lose out when international aid underperforms: Evidence from a participatory development experiment in Ghana," World Development, Elsevier, vol. 169(C).

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