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Staff growth in international organizations: Aprincipal-agent problem? An empirical analysis

Staff growth in international organizations: Aprincipal-agent problem? An empirical analysis The analysis covers 27 international organizations in the years 1950–2001. From the first to the last year, staff increased at a compound average rate of 3.2% per annum, while the number of member states rose by only 2.5%. The pooled analysis of 817 observations (including task proxies and organization dummies) reveals that (i) the elasticity of staff to membership is much larger than unity (1.36), (ii) United Nations organizations have significantly more staff, (iii) international organizations in the United States and Switzerland have significantly less staff, (iv) heterogeneity in terms of per capita income limits the size of an international organization and that (v) its staff is larger if its membership comprises many industrial or (former) communist countries. In a reduced sample, the financing share of the largest contributor in combination with the party or programmatic orientation of its government has a significantly negative effect on staff because the size of the largest financing share determines the incentive to monitor. U.S. exit from an international organization reduces its staff significantly. Most of these results depend on the condition that the non-stationary component of staff size is not taken account of by time dummies or trends. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Public Choice Springer Journals

Staff growth in international organizations: Aprincipal-agent problem? An empirical analysis

Public Choice , Volume 133 (4) – Jun 19, 2007

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References (33)

Publisher
Springer Journals
Copyright
Copyright © 2007 by Springer Science+Business Media, BV
Subject
Economics; Public Finance; Political Science
ISSN
0048-5829
eISSN
1573-7101
DOI
10.1007/s11127-007-9188-3
Publisher site
See Article on Publisher Site

Abstract

The analysis covers 27 international organizations in the years 1950–2001. From the first to the last year, staff increased at a compound average rate of 3.2% per annum, while the number of member states rose by only 2.5%. The pooled analysis of 817 observations (including task proxies and organization dummies) reveals that (i) the elasticity of staff to membership is much larger than unity (1.36), (ii) United Nations organizations have significantly more staff, (iii) international organizations in the United States and Switzerland have significantly less staff, (iv) heterogeneity in terms of per capita income limits the size of an international organization and that (v) its staff is larger if its membership comprises many industrial or (former) communist countries. In a reduced sample, the financing share of the largest contributor in combination with the party or programmatic orientation of its government has a significantly negative effect on staff because the size of the largest financing share determines the incentive to monitor. U.S. exit from an international organization reduces its staff significantly. Most of these results depend on the condition that the non-stationary component of staff size is not taken account of by time dummies or trends.

Journal

Public ChoiceSpringer Journals

Published: Jun 19, 2007

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