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Market Imperfections and Fair Trade

Alessandro Arrighetti ()

QA - Rivista dell'Associazione Rossi-Doria, 2009, issue 1

Abstract: The aim of the paper is to show that fair trade strategies play a major role in remedying market shortcomings at the level of organizational and information variables. The empirical evidence confirms the hypothesis that the greatest benefits for local producers stem from changes in advantageousness from short- to long-term objectives, increased investment propensity, and enhancement of collective action in the production of both private and collective goods, rather than from temporary increases in income.

Keywords: Trade; Fair Trade; Microeconomic Analysis of Economic Development; International Trade; Social Labels (search for similar items in EconPapers)
JEL-codes: D12 D4 D6 M14 O12 O17 L81 (search for similar items in EconPapers)
Date: 2009
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