Foreign aid effectiveness has been a hugely explored topic in the economic development and political economy literature. In spite of disagreements in the literature with regard to aid effectiveness, it can be undisputedly argued that aid is an important source of capital for many recipient...

Using a new dataset for 41 German non-governmental organizations (NGOs), we analyze the allocation of NGO aid across recipient countries in a Tobit regression framework. By identifying for each NGO the degree of public refinancing, we address the largely unresolved issue of whether financial...