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

  • Gilles Nancy
  • Boriana Yontcheva
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    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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    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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    1. Alesina, Alberto & Weder, Beatrice, 2002. "Do Corrupt Governments Receive Less Foreign Aid?," Scholarly Articles 4553011, Harvard University Department of Economics.
    2. Collier, Paul & Dollar, David, 2002. "Aid allocation and poverty reduction," European Economic Review, Elsevier, vol. 46(8), pages 1475-1500, September.
    3. Anna Fruttero & Varun Gauri, 2003. "Location decisions and nongovernmental organization motivation : evidence from rural Bangladesh," Policy Research Working Paper Series 3176, The World Bank.
    4. Dollar, David & Alesina, Alberto, 2000. "Who Gives Foreign Aid to Whom and Why?," Scholarly Articles 4553020, Harvard University Department of Economics.
    5. M Arellano & O Bover, 1990. "Another Look at the Instrumental Variable Estimation of Error-Components Models," CEP Discussion Papers dp0007, Centre for Economic Performance, LSE.
    6. Meyer, Carrie A., 1995. "Opportunism and NGOs: Entrepreneurship and green north-south transfers," World Development, Elsevier, vol. 23(8), pages 1277-1289, August.
    7. 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.
    8. 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.
    9. 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.
    10. Rick Davies, 1997. "Donor Information Demands And Ngo Institutional Development," Journal of International Development, John Wiley & Sons, Ltd., vol. 9(4), pages 613-620.
    11. 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.
    12. 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.
    13. Jack, William, 2001. "Public policy toward nongovernmental organizations in developing countries," Policy Research Working Paper Series 2639, The World Bank.
    14. Gounder, Rukmani, 1994. "Empirical results of aid motivations: Australia's bilateral aid program," World Development, Elsevier, vol. 22(1), pages 99-113, January.
    15. Frey, Bruno S. & Schneider, Friedrich, 1986. "Competing models of international lending activity," Journal of Development Economics, Elsevier, vol. 20(2), pages 225-245, March.
    16. 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.
    17. 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.
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