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The effects of Fair Trade on marginalised producers: an impact analysis on Kenyan farmers

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Author Info
Leonardo Becchetti () (Economics Department, University of Rome “Tor Vergata”)
Marco Costantino () (FORMEZ, Rome)

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Abstract

We analyse the impact of Fair Trade (FT) affiliation on monetary and non monetary measures of well-being on a sample of Kenyan farmers. Our econometric findings document significant differences in terms of price satisfaction, monthly household food consumption, (self declared) income satisfaction, dietary quality and child mortality for Fair Trade and Meru Herbs (first level local producers organisation) affiliated with respect to a control sample. Methodological problems such as the FT vis à vis Meru Herbs relative contribution, control sample bias, FT and Meru Herb selection biases are discussed and addressed. After reconstructing the dynamics of human capital investment in the observed households we show that affiliation to the younger vintage FT project is associated to a significantly higher schooling investment.

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Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 41.

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Length: 37 pages
Date of creation: 2006
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Handle: RePEc:inq:inqwps:ecineq2006-41

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Related research
Keywords: impact analysis; child labour; fair trade; monetary and non monetary wellbeing;

Find related papers by JEL classification:
O19 - Economic Development, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
O22 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis
D64 - Microeconomics - - Welfare Economics - - - Altruism

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-27, June.
  2. 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. [Downloadable!] (restricted)
  3. 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. [Downloadable!] (restricted)
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  1. Zanasi, Cesare & Paluan, Lorenzo, 2007. "Relationship between ethics and Fair Trade supply chain organisation and performance: the case of Italian Alternative Trade Organisations (ATO’s)," 105th Seminar, March 8-10, 2007, Bologna, Italy 7889, European Association of Agricultural Economists. [Downloadable!]
  2. Brigitte Granville, 2009. "Trust In Fairtrade: The 'Feel-Good' Effect," Working Papers 27, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research. [Downloadable!]
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