A Survey of the Economics of Fair Trade

14 Pages Posted: 20 Oct 2015

See all articles by Ana Dammert

Ana Dammert

Carleton University

Sarah A Mohan

Carleton University

Date Written: December 2015

Abstract

Fair Trade has spread in developing countries as an initiative aimed at lifting poor smallholder farmers out of poverty by providing them with premium prices, availability of credit, and improved community development and social goods. Fair Trade is also viewed as a niche market for high value products in a context of globalization and trade liberalization policies that affect smallholder farmers in developing countries. This paper provides an overview of the potential effects of Fair Trade, both theoretical and empirical, on smallā€scale producers in developing countries. Our review discusses the empirical evidence on prices and income, as well as the importance of limited market access and productivity. We discuss evidence on labor markets and human capital investments as well.

Keywords: Developing countries, Fair Trade, Market efficiency

Suggested Citation

Dammert, Ana and Mohan, Sarah A, A Survey of the Economics of Fair Trade (December 2015). Journal of Economic Surveys, Vol. 29, Issue 5, pp. 855-868, 2015, Available at SSRN: https://ssrn.com/abstract=2676381 or http://dx.doi.org/10.1111/joes.12091

Ana Dammert (Contact Author)

Carleton University ( email )

1125 colonel By Drive
Ottawa, Ontario K1S 5B6
Canada

Sarah A Mohan

Carleton University ( email )

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