Middlemen, Non-Profits and Poverty

Ravi Kanbur, Nancy Chau and Hideaki Goto

No 7459, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: In many markets in developing countries, especially in remote areas, middlemen are thought to earn excessive profits. Non-profits come in to counter what is seen as middlemen's market power, and rich country consumers pay a 'fair-trade' premium for products marketed by such non-profits. This paper provides answers to the following five questions. How exactly do middlemen and non-profits divide up the market? How do the price mark up and price pass-through differ between middleman and non-profits? What is the impact of non-profits entry on the wellbeing of the poor? Should the government subsidize the entry of non-profits, or the entry of middlemen? Should wealthy consumers in the North pay a premium for fair trade products, or should they support fair trade non-profits directly?

Keywords: Middlemen; Non-profits; Poverty; Market access (search for similar items in EconPapers)
JEL-codes: F15 I32 (search for similar items in EconPapers)
Date: 2009-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Related works:
Working Paper: Middlemen, Non-Profits, and Poverty (2009)
Working Paper: Middlemen, Non-Profits, and Poverty (2009)
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