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The Effects of Fair Trade on Affiliated Producers: An Impact Analysis on Kenyan Farmers

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  • Becchetti, Leonardo
  • Costantino, Marco

Abstract

Summary We analyse the impact of fair trade (FT) affiliation on monetary and non-monetary measures of well-being in a sample of Kenyan farmers. Our descriptive and econometric findings document significant differences in terms of varieties of products sold, price satisfaction, monthly household food consumption, (self declared) satisfaction with living conditions, dietary quality, and child mortality for affiliates of fair trade and Meru Herbs (first-level local producer organization) with respect to a control sample. Methodological problems such as FT's vis a vis Meru Herbs' relative contribution, control sample bias, FT and Meru Herbs selection biases are discussed and addressed showing that ex ante (self) selection of Meru Herbs members contributes to explaining some but not all of our results.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 36 (2008)
Issue (Month): 5 (May)
Pages: 823-842

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Handle: RePEc:eee:wdevel:v:36:y:2008:i:5:p:823-842

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Web page: http://www.elsevier.com/locate/worlddev

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  1. Loraine Ronchi, 2002. "The Impact of Fair Trade on Producers and Their Organisations: A Case Study with Coocafé in Costa Rica," PRUS Working Papers 11, Poverty Research Unit at Sussex, University of Sussex.
  2. LeClair, Mark S., 2002. "Fighting the Tide: Alternative Trade Organizations in the Era of Global Free Trade," World Development, Elsevier, vol. 30(6), pages 949-958, June.
  3. Bacon, Christopher, 2005. "Confronting the Coffee Crisis: Can Fair Trade, Organic, and Specialty Coffees Reduce Small-Scale Farmer Vulnerability in Northern Nicaragua?," World Development, Elsevier, vol. 33(3), pages 497-511, March.
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  8. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-27, June.
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  11. Redfern, Andy & Snedker, Paul, 2002. "Creating market opportunities for small enterprises : experiences of the fair trade movement," ILO Working Papers 357069, International Labour Organization.
  12. Deaton, A. & Paxson, C., 1997. "Economies of Scale, Household Size, and the Demand for Food," Papers 178, Princeton, Woodrow Wilson School - Development Studies.
  13. Manser, Marilyn & Brown, Murray, 1980. "Marriage and Household Decision-Making: A Bargaining Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 31-44, February.
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Cited by:
  1. Kadow, Alexander, 2011. "The Fair Trade movement: an economic perspective," SIRE Discussion Papers 2011-10, Scottish Institute for Research in Economics (SIRE).
  2. Barham, Bradford L. & Callenes, Mercedez & Gitter, Seth & Lewis, Jessa & Weber, Jeremy, 2011. "Fair Trade/Organic Coffee, Rural Livelihoods, and the "Agrarian Question": Southern Mexican Coffee Families in Transition," World Development, Elsevier, vol. 39(1), pages 134-145, January.
  3. Blackman, Allen & Rivera, Jorge, 2010. "The Evidence Base for Environmental and Socioeconomic Impacts of “Sustainable” Certification," Discussion Papers dp-10-17, Resources For the Future.
  4. Vincent Terstappen & Lori Hanson & Darrell McLaughlin, 2013. "Gender, health, labor, and inequities: a review of the fair and alternative trade literature," Agriculture and Human Values, Springer, vol. 30(1), pages 21-39, March.
  5. Balineau, Gaëlle, 2013. "Disentangling the Effects of Fair Trade on the Quality of Malian Cotton," World Development, Elsevier, vol. 44(C), pages 241-255.
  6. Gunther Bensch & Jörg Peters, 2011. "Impact Evaluation of Productive Use – An Implementation Guideline for Electrifi cation Projects," Ruhr Economic Papers 0279, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  7. Elder, Sara D. & Zerriffi, Hisham & Le Billon, Philippe, 2012. "Effects of Fair Trade Certification on Social Capital: The Case of Rwandan Coffee Producers," World Development, Elsevier, vol. 40(11), pages 2355-2367.
  8. Garance Gautrey, 2013. "La mise en place et l'internalisation des pratiques transmises aux producteurs dans le commerce équitable : une approche néo-institutionnaliste," Post-Print dumas-00933469, HAL.

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