Kiel Working Papers, Kiel Institute for World Economics
No 1405:
Is NGO Aid Not So Different After All? Comparing the Allocation of Swiss Aid by Private and Official Donors
Peter Nunnenkamp, Janina Weingarth and Johannes Weisser
Abstract: Being closer to the poor, NGOs are widely believed to
provide better targeted aid than state agencies. But empirical evidence is
largely lacking. We contribute to closing this gap by drawing on an
exceptionally detailed Swiss database that covers different forms of NGO
aid and several official aid benchmarks. The differentiated Tobit
estimations account for both altruistic and selfish aid motivations. It
turns out that it depends on the source of NGO funding as well as the
choice of the official benchmark whether or not NGOs provide better
targeted aid. In contrast to widespread belief, however, the allocation of
self-financed NGO aid reveals striking similarities to the allocation of
official Swiss development aid.
Keywords: NGO aid; Official aid; Aid allocation; Tobit models; (follow links to similar papers)
JEL-Codes: F35; (follow links to similar papers)
32 pages, March 2008
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