Market access, organic farming and productivity: the determinants of creation of economic value on a sample of Fair Trade affiliated Thai farmers

Leonardo Becchetti, Pierluigi Conzo and Giuseppina Gianfreda

No wp05, Econometica Working Papers from Econometica

Abstract: We analyse the impact of Fair Trade and organic farming on a sample of Fair Trade organic rice producers in Thailand. We find that per capita income from agriculture is positively and significantly affected by organic certification and FT affiliation years. Such effect does not translate into higher productivity due to a concurring increase in worked hours. FT and organic certification contributions are however downward biased if we do not take into account the relatively higher share of self- consumption of affiliated farmers. Our main findings are robust when we control for selection bias and endogeneity with instrumental variables, propensity score matching and by restricting the sample to affiliated producers only. We also test which of the two (organic and FT) effects is stronger and find that the latter prevails.

Keywords: organic production; Fair Trade; productivity (search for similar items in EconPapers)
JEL-codes: O18 O19 O22 (search for similar items in EconPapers)
Pages: 47
Date: 2009-01
New Economics Papers: this item is included in nep-agr, nep-dev, nep-eff and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Market access, organic farming and productivity: the effects of Fair Trade addiliation on Thai farmer producers groups (2012)
Journal Article: Market access, organic farming and productivity: the effects of Fair Trade affiliation on Thai farmer producer groups (2012)
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