Middlemen, fair traders, and poverty

Nancy Chau, Hideaki Goto () and Ravi Kanbur

The Journal of Economic Inequality, 2016, vol. 14, issue 1, 108 pages

Abstract: We propose a spatial model of producer market access where local middlemen reap market power due to match friction, and fair traders enter to present an alternative. The model features location as a key determinant of the impact of fair trader entry on the market share of fair traders, the distribution of consumer willingness to pay between middlemen and producers, and intra- / inter-regional poverty incidence. For governments who wish to minimize the poverty gap, our results support directing resources to subsidize fair trade organizations, and/or to producers with no access to markets, rather than to local middlemen intermediaries. Copyright Springer Science+Business Media New York 2016

Keywords: Middlemen; Fair traders; Poverty; Market access (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:kap:jecinq:v:14:y:2016:i:1:p:81-108

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DOI: 10.1007/s10888-015-9314-2

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