As the importance of NGOs is in the aid process increases, this research asks whether NGOs respond to criteria similar to the proposed economic factors important in the conditional aid literature. Data from US-based NGOs, specifically, is used to ask whether country involvement varies based on funding source (receiving versus not receiving US government contracts and grants) and economic criteria. Results indicate that NGOs overall do respond to low per capita incomes. NGOs receiving government funding are more region-neutral while non-government funded NGOs tend to become involved with countries with higher levels of government consumption. Finally, while government funded NGOs are neutral to increases in population, the number of non-government funded NGOs increases with population. In terms of activity choices, the data suggests significant differences in the proportions of NGOs receiving government funding and not receiving funding in the categories “Agriculture/Food Production,” “HIV/AIDS,” “Business Development, Credit”—which all have a higher proportion of government funded NGOS—and “Policy Research and Analysis”—which has a higher proportion of non-funded NGOs.
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