Keeping a Low Profile: What Determines the Allocation of Aid by Non-Governmental Organizations?

KOF Working Paper No. 191

35 Pages Posted: 20 Mar 2008

See all articles by Dirk-Jan Koch

Dirk-Jan Koch

Centre for International Development Issues Nijmegen

Axel Dreher

Heidelberg University

Peter Nunnenkamp

University of Kiel

Rainer Thiele

Kiel Institute for the World Economy

Date Written: March 1, 2008

Abstract

NGOs play an important role in international development cooperation, but the allocation of NGO aid has rarely been mapped, let alone explained. Based on a representative dataset for 61 important NGOs from various OECD countries, we analyze the targeting of NGO aid across a large number of recipient countries by jointly considering major determinants of NGO aid in a multivariate regression framework. While our results show that NGOs are more active in the neediest countries, we reject the hypothesis that NGOs complement official aid through engaging in so-called difficult institutional environments. Rather, they tend to replicate the location choices of official "backdonors." Moreover, NGOs follow other NGOs so that aid gets clustered. Finally, NGOs select recipient countries with common traits related to religion or colonial history. Taken together, our findings suggest that NGOs keep a low profile rather than distinguishing themselves from other donors and trying to excel under risky conditions.

Keywords: aid allocation, aid agencies, non-governmental organizations, poverty

JEL Classification: O20

Suggested Citation

Koch, Dirk-Jan and Dreher, Axel and Nunnenkamp, Peter and Thiele, Rainer, Keeping a Low Profile: What Determines the Allocation of Aid by Non-Governmental Organizations? (March 1, 2008). Available at SSRN: https://ssrn.com/abstract=1109101 or http://dx.doi.org/10.2139/ssrn.1109101

Dirk-Jan Koch (Contact Author)

Centre for International Development Issues Nijmegen ( email )

Postbus 9108
Nijmegen, 6500 HK
Netherlands

HOME PAGE: http://www.ru.nl/cidin/about_cidin/staff/virtual_map/koch/

Axel Dreher

Heidelberg University ( email )

Grabengasse 1
Heidelberg, 69117
Germany

HOME PAGE: http://www.axel-dreher.de

Peter Nunnenkamp

University of Kiel ( email )

D-24100 Kiel
Germany

Rainer Thiele

Kiel Institute for the World Economy ( email )

P.O. Box 4309
Kiel, D-24100
Germany
+49 431 8814 215 (Phone)
+49 431 8814 500 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
137
rank
206,784
Abstract Views
1,088
PlumX Metrics
!

Under construction: SSRN citations will be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information