Appendix A. Data Description and Sources
Appendix B. Level of Government Relevant for Public Expenditure Data
Appendix C. Countries
Appendix D. Millennium Development Goals
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Nadia Masud was a summer intern in the IMF Institute when this paper was being prepared; she is a PhD candidate at the University of Oxford, United Kingdom. Boriana Yontcheva is an economist at the IMF Institute. We gratefully acknowledge the assistance of France Marion, Lisbeth Ekelof and César-Luis Valor-Arce, European Commission who provided key data for this research. We are indebted to B. Baltagi for guidance and discussions on the econometrics of this paper. J. Salvati provided invaluable technical assistance. A. Berg, T. Cordella, A. Feltenstein, and participants at an IMF Institute seminar provided many useful suggestions. Errors are solely ours.
For a more detailed exposition of the relationship between the EU and NGOs, see Cox and Koning (1997).
The Davidson and MacKinnon test showed that regressors were all strictly exogenous.
NGO aid is defined as projects implemented by foreign NGOs and, hence, is a resource for the recipient country that is outside the budget.
We used the Davidson MacKinnon test for exogeneity.