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Market Access, Organic Farming And Productivity: The Determinants Of Creation Of Economic Value On A Sample Of Fair Trade Affiliated Thai Farmers


  • Leonardo Becchetti
  • Pierluigi Conzo
  • Giuseppina Gianfreda

    (University of Rome Tor Vergata, University of Rome Tor Vergata, University of Tuscia)


We analyse the impact of Fair Trade and organic farming on a sample of Fair Trade rice producers in Thailand. We find that per capita income from agriculture is positively and significantly affected by organic certification and FT affiliation years. This effect does not translate into higher productivity due to a concurring increase in worked hours. The estimated FT and organic certification contributions are however downward biased if we do not take into account the relatively higher share of selfconsumption of affiliated farmers. Our main findings are robust when we control for selection bias and endogeneity with instrumental variables, when using propensity score matching and restricting the sample to affiliated producers only. We also test which of the two (organic and FT) effects is stronger and find that the latter prevails.

Suggested Citation

  • Leonardo Becchetti & Pierluigi Conzo & Giuseppina Gianfreda, 2009. "Market Access, Organic Farming And Productivity: The Determinants Of Creation Of Economic Value On A Sample Of Fair Trade Affiliated Thai Farmers," Working Papers 0309, CREI Università degli Studi Roma Tre, revised 2009.
  • Handle: RePEc:rcr:wpaper:03_09

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    References listed on IDEAS

    1. Alfons Oude Lansink & Ky–sti Pietola, 2002. "Effciency and productivity of conventional and organic farms in Finland 1994--1997," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(1), pages 51-66, March.
    2. McIntosh, Craig & Villaran, Gonzalo & Wydick, Bruce, 2011. "Microfinance and Home Improvement: Using Retrospective Panel Data to Measure Program Effects on Fundamental Events," World Development, Elsevier, vol. 39(6), pages 922-937, June.
    3. Reinstein, David & Song, Joon, 2008. "Efficient Consumer Altruism and Fair Trade," Economics Discussion Papers 2936, University of Essex, Department of Economics.
    4. LeClair, Mark S., 2002. "Fighting the Tide: Alternative Trade Organizations in the Era of Global Free Trade," World Development, Elsevier, vol. 30(6), pages 949-958, June.
    5. repec:ilo:ilowps:357069 is not listed on IDEAS
    6. Loraine Ronchi, 2002. "The Impact of Fair Trade on Producers and Their Organisations: A Case Study with Coocafé in Costa Rica," PRUS Working Papers 11, Poverty Research Unit at Sussex, University of Sussex.
    7. 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.
    8. Redfern, Andy. & Snedker, Paul., 2002. "Creating market opportunities for small enterprises : experiences of the fair trade movement," ILO Working Papers 993570693402676, International Labour Organization.
    9. David Reinstein & Joon Song, 2012. "Efficient Consumer Altruism and Fair Trade Products," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 21(1), pages 213-241, March.
    10. Windmeijer, Frank, 2005. "A finite sample correction for the variance of linear efficient two-step GMM estimators," Journal of Econometrics, Elsevier, vol. 126(1), pages 25-51, May.
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    Cited by:

    1. Ulrich B. Morawetz & Dieter Mayr & Doris Damyanovic, 2016. "Ökonomische Effekte grüner Infrastruktur als Teil eines Grünflächenfaktors. Ein Leitfaden," Working Papers 662016, Institute for Sustainable Economic Development, Department of Economics and Social Sciences, University of Natural Resources and Life Sciences, Vienna.
    2. Leonardo Becchetti & Giuseppina Gianfreda, 2011. "When Consumption Heals Producers: The Effects of Fair Trade on Marginalized Producers," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 3, September.

    More about this item


    organic production; Fair Trade; productivity;

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • 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


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