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The Economics of Fair Trade

Raluca Dragusanu, Daniele Giovannucci and Nathan Nunn

Scholarly Articles from Harvard University Department of Economics

Abstract: Fair Trade is a labeling initiative aimed at improving the lives of the poor in developing countries by offering better terms to producers and helping them to organize. Whether Fair Trade can achieve its intended goals has been hotly debated in academic and policy circles. In particular, debates have been waged about whether Fair Trade makes "economic sense" and is sustainable in the long run. The aim of this article is to provide a critical overview of the economic theory behind Fair Trade, describing the potential benefits and potential pitfalls. We also provide an assessment of the empirical evidence of the impacts of Fair Trade to date.

Date: 2014
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Citations: View citations in EconPapers (81)

Published in Journal of Economic Perspectives

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