Government Expenditure and Nonprofit Sector Size: Testing Boundary Conditions for Theories of Government–Nonprofit Relationships With Evidence From Chinese Environmental NGOs

This study explores boundary conditions for the two competing models—supplementary and complementary models—of government–nonprofit relationships within the context of Chinese environmental nongovernmental organizations (eNGOs). Analyses of 8 years of panel data and in-depth interviews reveal the following: First, while the complementary model effectively explains the relationship between government and environmental government-organized NGOs (eGONGOs), the sector size association between the government and civic eNGOs displays a pattern that combines supplementary and complementary models. Second, when predicting the sector size association between the government and civic eNGOs, the complementary model prevails when the government size is small while the supplementary model dominates when the government is large. Third, the complementary relationship persists for a longer duration under certain policy contexts, particularly in cases where direct registration policies are implemented. This study contributes to the literature by complementing recent endeavors to explore potential moderating or mediating effects of government–nonprofit relationship models.