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When NGOs Go Global: competition on international markets for development donations

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
0022-1996
198-210
Aldashev, Gani.
ef39322b-d5b4-4cb2-ad01-ae8e82313883
Verdier, Thierry.
e052645c-6dfb-4851-8802-353c50cf713f
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), 198-210. (doi:10.1016/j.jinteco.2009.07.007).

Record type: Article

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: https://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: 16 Jul 2019 23:56

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Contributors

Author: Gani. Aldashev
Author: Thierry. Verdier

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