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On the effects of fair trade on the welfare of the poor

✍ Scribed by Florian Baumann; Matthias Oschinski; Nikolai Stähler

Publisher
John Wiley and Sons
Year
2010
Tongue
English
Weight
127 KB
Volume
24
Category
Article
ISSN
0954-1748

No coin nor oath required. For personal study only.

✦ Synopsis

Abstract

Despite the rising importance of fair trade (FT), a relatively small amount of academic research has been done in this area so far. Advocates of FT claim that it will ultimately improve the living conditions of the poor. Opponents hold that it will worsen their situation. More often than not, public discussion is affected by dogmatic views, prejudices and emotional charges. This paper aims to contribute to an objective discussion of the topic. We present a matching model to analyse the welfare effects of FT in an agricultural market. Our results show that producers obtaining FT certification are better off. All others will lose if incentives for importers to enter the market decline. Copyright © 2010 John Wiley & Sons, Ltd.

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