When NGOs Go Global: competition on international markets for development donations
When NGOs Go Global: competition on international markets for development donations
Why are many large non-governmental organizations (NGOs) becoming multinational entities? What are the welfare implications of this integration of markets for development donations? To answer these questions, we build a simple two-country model with horizontally differentiated NGOs competing in fundraising. We find that NGOs become multinational if the economies of scale in fundraising are sufficiently large. In that case, national NGOs in the smaller country disappear, while some national NGOs remain in the larger country only if country sizes are sufficiently different. Social welfare is higher in the regime with multinationals than under autarky.
non-governmental organizations, charitable giving, fundraising, globalization, multinational firms
198-210
Aldashev, Gani.
ef39322b-d5b4-4cb2-ad01-ae8e82313883
Verdier, Thierry.
e052645c-6dfb-4851-8802-353c50cf713f
November 2009
Aldashev, Gani.
ef39322b-d5b4-4cb2-ad01-ae8e82313883
Verdier, Thierry.
e052645c-6dfb-4851-8802-353c50cf713f
Aldashev, Gani. and Verdier, Thierry.
(2009)
When NGOs Go Global: competition on international markets for development donations.
Journal of International Economics, 79 (2), .
(doi:10.1016/j.jinteco.2009.07.007).
Abstract
Why are many large non-governmental organizations (NGOs) becoming multinational entities? What are the welfare implications of this integration of markets for development donations? To answer these questions, we build a simple two-country model with horizontally differentiated NGOs competing in fundraising. We find that NGOs become multinational if the economies of scale in fundraising are sufficiently large. In that case, national NGOs in the smaller country disappear, while some national NGOs remain in the larger country only if country sizes are sufficiently different. Social welfare is higher in the regime with multinationals than under autarky.
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Published date: November 2009
Keywords:
non-governmental organizations, charitable giving, fundraising, globalization, multinational firms
Identifiers
Local EPrints ID: 157431
URI: http://eprints.soton.ac.uk/id/eprint/157431
ISSN: 0022-1996
PURE UUID: 3d351f9e-904e-4950-8f3b-e453e4bd88bc
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Date deposited: 10 Jun 2010 13:07
Last modified: 14 Mar 2024 01:46
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Author:
Gani. Aldashev
Author:
Thierry. Verdier
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