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Market Imperfections and Fair Trade

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Author Info

  • Alessandro Arrighetti

Abstract

The aim of the paper is to show that fair trade strategies play a major role in remedying market shortcomings at the level of organizational and information variables. The empirical evidence confirms the hypothesis that the greatest benefits for local producers stem from changes in advantageousness from short- to long-term objectives, increased investment propensity, and enhancement of collective action in the production of both private and collective goods, rather than from temporary increases in income.

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Bibliographic Info

Article provided by Associazione Rossi Doria in its journal QA.

Volume (Year): (2009)
Issue (Month): 1 (March)
Pages:

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Handle: RePEc:rar:journl:0096

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Related research

Keywords: Trade; Fair Trade; Microeconomic Analysis of Economic Development; International Trade; Social Labels;

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References

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  1. Gould, David M. & Gruben, William C., 1996. "The role of intellectual property rights in economic growth," Journal of Development Economics, Elsevier, vol. 48(2), pages 323-350, March.
  2. Fabrizio Adriani & Leonardo Becchetti, 2004. "Fair Trade: A 'Third Generation' Welfare Mechanism to Make Globalisation Sustainable," CEIS Research Paper 62, Tor Vergata University, CEIS.
  3. A. Arrighetti, 2007. "Fair trade, premio di prezzo e fallimenti del mercato," Economics Department Working Papers 2007-EP06, Department of Economics, Parma University (Italy).
  4. Laura T. Raynolds & Douglas Murray & Peter Leigh Taylor, 2004. "Fair trade coffee: building producer capacity via global networks," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(8), pages 1109-1121.
  5. A. Affuso & A. Arrighetti & G. Seravalli, 2003. "L'avvio dello sviluppo locale nei paesi a elevata poverta':il problema delle trappole combinate," Economics Department Working Papers 2003-EP01, Department of Economics, Parma University (Italy).
  6. Stephanie Barrientos, 2000. "Globalization and ethical trade: assessing the implications for development," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(4), pages 559-570.
  7. Maseland, Robbert & Vaal, Albert de, 2001. "How fair is fair trade?," Research Report 01C48, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
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