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Trade, Standards, and Poverty: Evidence from Senegal

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  • Maertens, Miet
  • Swinnen, Johan F.M.

Abstract

Summary In the debate on trade and poverty it is argued that standards act as trade barriers and cause marginalization of the poor. This paper quantifies income and poverty effects of high-standards trade and integrates labor market effects, by using company and household survey data from the vegetable export chain in Senegal. We find that exports grew sharply despite increasing standards, contributing importantly to rural incomes and poverty reduction. Tightening standards induced a shift from smallholder contract farming to integrated estate production, altering the mechanism through which poor households benefit: through labor markets instead of product markets.

Suggested Citation

  • Maertens, Miet & Swinnen, Johan F.M., 2009. "Trade, Standards, and Poverty: Evidence from Senegal," World Development, Elsevier, vol. 37(1), pages 161-178, January.
  • Handle: RePEc:eee:wdevel:v:37:y:2009:i:1:p:161-178
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    More about this item

    Keywords

    trade poverty standards vertical coordination modern supply chains;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics

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