An empirical assessment of Fairtrade: A perspective for low-and middle-income countries?

Elisabeth Nindl ()

No 160, Department of Economics Working Paper Series from WU Vienna University of Economics and Business

Abstract: This paper presents the first cross-country empirical evidence on the determinants of participation in Fairtrade and the impact of the export of Fairtrade certified products on agricultural growth in low- and middle-income countries. Using the number of certified producer organizations per country in 2006-2010 as a proxy for Fairtrade exports, estimation results indicate a small but significantly positive effect on the growth rate of per capita value added in agriculture that is largest in upper middle income countries. Given the particularly poverty-reducing effect of agricultural growth, we find empirical evidence that Fairtrade certification is indeed able to deliver its core values, but misses to target the very poor. (author's abstract)

Keywords: Fairtrade; Agriculture; Growth; Poverty (search for similar items in EconPapers)
Date: 2014-01
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