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


  • Leonardo Becchetti

    () (Economics Department, University of Rome “Tor Vergata”)

  • Marco Costantino

    () (FORMEZ, Rome)


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.

Suggested Citation

  • Leonardo Becchetti & Marco Costantino, 2006. "The effects of Fair Trade on marginalised producers: an impact analysis on Kenyan farmers," Working Papers 41, ECINEQ, Society for the Study of Economic Inequality.
  • Handle: RePEc:inq:inqwps:ecineq2006-41

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    References listed on IDEAS

    1. 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.
    2. Beatriz Armendariz & Jonathan Morduch, 2007. "The Economics of Microfinance," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262512017, July.
    3. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-427, June.
    4. 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.
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    Cited by:

    1. Jess Bonnan-White & Andrea Hightower & Ameena Issa, 2013. "Of couscous and occupation: a case study of women’s motivations to join and participate in Palestinian fair trade cooperatives," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 30(3), pages 337-350, September.
    2. Leonardo Becchetti & Stefano Castriota, 2008. "Is Fair Trade Honey Sweeter? An empirical analysis on the effect of affiliation on productivity," Working Papers 104, ECINEQ, Society for the Study of Economic Inequality.
    3. 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.
    4. Zanasi, Cesare & Paluan, Lorenzo, 2007. "Relationship between ethics and Fair Trade supply chain organisation and performance: the case of Italian Alternative Trade Organisations (ATOs)," 105th Seminar, March 8-10, 2007, Bologna, Italy 7889, European Association of Agricultural Economists.

    More about this item


    impact analysis; child labour; fair trade; monetary and non monetary wellbeing;

    JEL classification:

    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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