The Effects of Fair Trade When Productivity Differences Matter
This paper uses a heterogeneous firms model to scrutinize the alleged aim of Fair Trade to help the most disadvantaged producers in developing countries. Incorporating important aspects of Fair Trade in a two-good heterogeneous firm model we show that the more productive firms will join Fair Trade arrangements. Presuming that the least advantaged producers are those with lowest productivity, it thus appears that Fair Trade cannot live up to its expectations.
|Date of creation:||Sep 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +45 6550 2233
Fax: +45 6550 1090
Web page: http://degit.sam.sdu.dk/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:deg:conpap:c017_017. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jan Pedersen)
If references are entirely missing, you can add them using this form.