Middlemen, Non-Profits, and Poverty
AbstractIn many markets in developing countries, especially in remote areas, middlemen are thought to earn excessive profits. Non-profits come in to counter what is seen as middlemen's market power, and rich country consumers pay a "fair-trade" premium for products marketed by such non-profits. This paper provides answers to the following five questions. How exactly do middlemen and non-profits divide up the market? How do the price mark up and price pass-through differ between middleman and non-profits? What is the impact of non-profits entry on the wellbeing of the poor? Should the government subsidize the entry of non-profits, or the entry of middlemen? Should wealthy consumers in the North pay a premium for fair trade products, or should they support fair trade non-profits directly?
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4406.
Length: 40 pages
Date of creation: Sep 2009
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Other versions of this item:
- Chau, Nancy H. & Goto, Hideaki & Kanbur, Ravi, 2009. "Middlemen, Non-Profits, and Poverty," Working Papers 55931, Cornell University, Department of Applied Economics and Management.
- Chau, Nancy H & Goto, Hideaki & Kanbur, Ravi, 2009. "Middlemen, Non-Profits and Poverty," CEPR Discussion Papers 7459, C.E.P.R. Discussion Papers.
- F15 - International Economics - - Trade - - - Economic Integration
- I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
- L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-10-10 (All new papers)
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