Spatial Differences in the Founding Pattern of Nongovernmental Organizations and Not-for-Profit Companies

Abstract

This study compares the need of the communities, the availability of financial resources for the organizations, and the density of existing organizations on NGOs' and NFCs' founding behavior in Nepal between 2012 and 2018. The study uses negative binomial regression models to demonstrate that NGOs and NFCs emerge in relatively prosperous areas than serving the communities with need. Furthermore, the density of similar organizations also affected where NGOs and NFCs emerge. This research also demonstrates that night time light data can serve as a reliable alternative proxy for measuring the communities' well-being and wealth at the subnational level in developing countries.