An empirical assessment of Fairtrade: A perspective for low- and middle-income countries?
This paper presents the first cross-country empirical evidence on the determinants of participation in Fairtrade and the impact of the export of Fairtrade certified products on agricultural growth in low and middle income countries. Using the number of certified producer organizations per country in 2006-2010 as a proxy for Fairtrade exports, estimation results indicate a small but significantly positive effect on the growth rate of per capita value added in agriculture that is largest in upper middle income countries. Given the particularly poverty-reducing effect of agricultural growth, we find empirical evidence that Fairtrade certification is indeed able to deliver its core values, but misses to target the very poor.
|Date of creation:||Jan 2014|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.wu.ac.at/economics/en
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Martijn Burger & Frank van Oort & Gert-Jan Linders, 2009.
"On the Specification of the Gravity Model of Trade: Zeros, Excess Zeros and Zero-inflated Estimation,"
Spatial Economic Analysis,
Taylor & Francis Journals, vol. 4(2), pages 167-190.
- Burger, M.J. & van Oort, F.G. & Linders, G.J.M., 2009. "On the Specification of the Gravity Model of Trade: Zeros, Excess Zeros and Zero-Inflated Estimation," ERIM Report Series Research in Management ERS-2009-003-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
- Puhani, Patrick A, 2000. " The Heckman Correction for Sample Selection and Its Critique," Journal of Economic Surveys, Wiley Blackwell, vol. 14(1), pages 53-68, February.
- Ulrich Witt, 2011. "The Dynamics of Consumer Behavior and the Transition to Sustainable Consumption Patterns," Papers on Economics and Evolution 2011-03, Philipps University Marburg, Department of Geography.
- Heckman, James J, 1979.
"Sample Selection Bias as a Specification Error,"
Econometric Society, vol. 47(1), pages 153-61, January.
- Madden, David, 2006.
"Sample Selection Versus Two-Part Models Revisited: The Case of Female Smoking and Drinking,"
HRBWP23, Economic and Social Research Institute (ESRI).
- Madden, David, 2008. "Sample selection versus two-part models revisited: The case of female smoking and drinking," Journal of Health Economics, Elsevier, vol. 27(2), pages 300-307, March.
- David Madden, 2006. "Sample Selection Versus Two-Part Models Revisited - The Case of Female Smoking and Drinking," Working Papers 200604, School of Economics, University College Dublin.
- David Madden, 2006. "Sample Selection Versus Two-Part Models Revisited: the Case of Female Smoking and Drinking," Health, Econometrics and Data Group (HEDG) Working Papers 06/12, HEDG, c/o Department of Economics, University of York.
- Jesus Crespo Cuaresma & Harald Oberhofer & Paul Raschky, .
"Oil and the duration of dictatorships,"
2008-24, Faculty of Economics and Statistics, University of Innsbruck.
- Crespo Cuaresma, Jesus & Oberhofer, Harald & Raschky, Paul, 2010. "Oil and the duration of dictatorships," Working Papers in Economics and Finance 2010-3, University of Salzburg.
- Jesus Crespo Cuaresma & Harald Oberhofer & Paul Raschky, 2010. "Oil and the Duration of Dictatorships," Monash Economics Working Papers 10-10, Monash University, Department of Economics.
- Collier, Paul & Dollar, David, 2002.
"Aid allocation and poverty reduction,"
European Economic Review,
Elsevier, vol. 46(8), pages 1475-1500, September.
- 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.
- Raynolds, Laura T., 2009. "Mainstreaming Fair Trade Coffee: From Partnership to Traceability," World Development, Elsevier, vol. 37(6), pages 1083-1093, June.
- Blundell, Richard & Bond, Stephen, 1998.
"Initial conditions and moment restrictions in dynamic panel data models,"
Journal of Econometrics,
Elsevier, vol. 87(1), pages 115-143, August.
- R Blundell & Steven Bond, . "Initial conditions and moment restrictions in dynamic panel data model," Economics Papers W14&104., Economics Group, Nuffield College, University of Oxford.
- Richard Blundell & Steve Bond, 1995. "Initial conditions and moment restrictions in dynamic panel data models," IFS Working Papers W95/17, Institute for Fiscal Studies.
- Blundell, R. & Bond, S., 1995. "Initial Conditions and Moment Restrictions in Dynamic Panel Data Models," Economics Papers 104, Economics Group, Nuffield College, University of Oxford.
- Dennis Yanchus & Xavier de Vanssay, 2003. "The Myth of Fair Prices: A Graphical Analysis," The Journal of Economic Education, Taylor & Francis Journals, vol. 34(3), pages 235-240, January.
- Collier, Paul & Hoeffler, Anke, 1998. "On Economic Causes of Civil War," Oxford Economic Papers, Oxford University Press, vol. 50(4), pages 563-73, October.
- Hansen, Henrik & Tarp, Finn, 2000.
"Aid and Growth Regressions,"
62288, University Library of Munich, Germany.
- William Low & Eileen Davenport, 2005. "Postcards from the edge: maintaining the 'alternative' character of fair trade," Sustainable Development, John Wiley & Sons, Ltd., vol. 13(3), pages 143-153.
- Valkila, Joni, 2009. "Fair Trade organic coffee production in Nicaragua -- Sustainable development or a poverty trap?," Ecological Economics, Elsevier, vol. 68(12), pages 3018-3025, October.
- William Hauk & Romain Wacziarg, 2009.
"A Monte Carlo study of growth regressions,"
Journal of Economic Growth,
Springer, vol. 14(2), pages 103-147, June.
- Leung, Siu Fai & Yu, Shihti, 1996.
"On the choice between sample selection and two-part models,"
Journal of Econometrics,
Elsevier, vol. 72(1-2), pages 197-229.
- Leung, S.F. & Yu, S., 1992. "On the Choice Between Sample Selection and Two-Part Models," RCER Working Papers 337, University of Rochester - Center for Economic Research (RCER).
- Poulton, Colin & Dorward, Andrew & Kydd, Jonathan, 2010. "The Future of Small Farms: New Directions for Services, Institutions, and Intermediation," World Development, Elsevier, vol. 38(10), pages 1413-1428, October.
- Christiaensen, Luc & Demery, Lionel & Kuhl, Jesper, 2011.
"The (evolving) role of agriculture in poverty reduction--An empirical perspective,"
Journal of Development Economics,
Elsevier, vol. 96(2), pages 239-254, November.
- Christiaensen,Luc & Demery,Lionel & Kuhl, Jesper, 2010. "The (Evolving) Role of Agriculture in Poverty Reduction: An Empirical Perspective," Working Paper Series UNU-WIDER Working Paper W, World Institute for Development Economic Research (UNU-WIDER).
- 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.
- Michael A. Clemens & Steven Radelet & Rikhil R. Bhavnani & Samuel Bazzi, 2012. "Counting Chickens when they Hatch: Timing and the Effects of Aid on Growth," Economic Journal, Royal Economic Society, vol. 122(561), pages 590-617, 06.
- Markelova, Helen & Meinzen-Dick, Ruth & Hellin, Jon & Dohrn, Stephan, 2009. "Collective action for smallholder market access," Food Policy, Elsevier, vol. 34(1), pages 1-7, February.
- Mann, Stefan, 2008. "Analysing fair trade in economic terms," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(5), pages 2034-2042, October.
- Arnould, Eric & Plastina, Alejandro & Ball, Dwayne, 2009. "Does Fair Trade Deliver on Its Core Value Proposition? Effects on Income, Educational Attainment, and Health in Three Countries," Staff General Research Papers 39169, Iowa State University, Department of Economics.
- Corinne Gendron & Véronique Bisaillon & Ana Rance, 2009. "The Institutionalization of Fair Trade: More than Just a Degraded Form of Social Action," Journal of Business Ethics, Springer, vol. 86(1), pages 63-79, April.
- Arellano, Manuel & Bond, Stephen, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Wiley Blackwell, vol. 58(2), pages 277-97, April.
- Tom Doan, . "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- William Greene, 2009. "Models for count data with endogenous participation," Empirical Economics, Springer, vol. 36(1), pages 133-173, February.
- de Janvry, Alain & Sadoulet, Elisabeth, 2000. "Rural poverty in Latin America: Determinants and exit paths," Food Policy, Elsevier, vol. 25(4), pages 389-409, August.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwwuw:wuwp160. 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: (Department of Economics)
If references are entirely missing, you can add them using this form.