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A Survey Of The Economics Of Fair Trade

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  • Ana C. Dammert
  • Sarah Mohan

Abstract

Fair Trade has spread in developing countries as an initiative aimed at lifting poor smallholder farmers out of poverty by providing them with premium prices, availability of credit, and improved community development and social goods. Fair Trade is also viewed as a niche market for high value products in a context of globalization and trade liberalization policies that affect smallholder farmers in developing countries. This paper provides an overview of the potential effects of Fair Trade, both theoretical and empirical, on small-scale producers in developing countries. Our review discusses the empirical evidence on prices and income, as well as the importance of limited market access and productivity. We discuss evidence on labor markets and human capital investments as well.

Suggested Citation

  • Ana C. Dammert & Sarah Mohan, 2015. "A Survey Of The Economics Of Fair Trade," Journal of Economic Surveys, Wiley Blackwell, vol. 29(5), pages 855-868, December.
    • Handle: RePEc:bla:jecsur:v:29:y:2015:i:5:p:855-868
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    2. Friedrichsen, Jana & Engelmann, Dirk, 2018. "Who cares about social image?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 110, pages 61-77.
    3. Carlos Omar Trejo-Pech & Roselia Servín-Juárez & Álvaro Reyes-Duarte, 2023. "What sets cooperative farmers apart from non-cooperative farmers? A transaction cost economics analysis of coffee farmers in Mexico," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-24, December.
    4. Bosbach, Moritz & Maietta, Ornella Wanda, 2019. "The Implicit Price for Fair Trade Coffee: Does Social Capital Matter?," Ecological Economics, Elsevier, vol. 158(C), pages 34-41.
    5. Dietz, Thomas & Biber-Freudenberger, Lisa & Deal, Laura & Börner, Jan, 2022. "Is private sustainability governance a myth? Evaluating major sustainability certifications in primary production: A mixed methods meta-study," Ecological Economics, Elsevier, vol. 201(C).
    6. Joachim J. Schouteten & Xavier Gellynck & Hendrik Slabbinck, 2021. "Do Fair Trade Labels Bias Consumers’ Perceptions of Food Products? A Comparison between a Central Location Test and Home-Use Test," Sustainability, MDPI, vol. 13(3), pages 1-17, January.
    7. Durevall, Dick, 2017. "Who Benefits from Fairtrade? Evidence from the Swedish Coffee Market," Working Papers in Economics 708, University of Gothenburg, Department of Economics.
    8. Ligang Song & Vishesh Agarwal, 2023. "The Future of Multilateralism in the Post‐pandemic World," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 31(1), pages 62-87, January.
    9. Sylvaine Poret, 2019. "Corporate–NGO Partnerships through Sustainability Labeling Schemes: Motives and Risks," Sustainability, MDPI, vol. 11(9), pages 1-19, May.
    10. Dick Durevall, 2020. "Fairtrade and Market Efficiency: Fairtrade-Labeled Coffee in the Swedish Coffee Market," Economies, MDPI, vol. 8(2), pages 1-17, April.
    11. Aashish Argade & Sukhpal Singh, 2016. "Seeking Markets in Production Fields: An Assessment of the Potential for Fair Trade in India," Millennial Asia, , vol. 7(2), pages 131-152, October.
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    More about this item

    JEL classification:

    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • P46 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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