Is Fair Trade Honey Sweeter? An Empirical Analysis on the Effect of Affiliation on Productivity

38 Pages Posted: 2 Jul 2009

See all articles by Leonardo Becchetti

Leonardo Becchetti

University of Rome Tor Vergata - Faculty of Economics

Stefano Castriota

University of Perugia

Date Written: July 1, 2009

Abstract

We evaluate the impact of affiliation to Fair Trade on a sample of Chilean honey producers. Evidence from standard regressions and propensity score matching shows that affiliated farmers have higher productivity (income from honey per worked hour) than the control sample. Additional results on the effects of affiliation on training, cooperation and advances on payments suggest that affiliation contributed both to, and independently from, the economies of scale effect. Therefore, we show that the productivity effect is partially explained by the superior capacity of affiliated workers to exploit economies of scale.

Keywords: fair trade, economies of scale, productivity

JEL Classification: D63, D64, O18, O19, O22

Suggested Citation

Becchetti, Leonardo and Castriota, Stefano, Is Fair Trade Honey Sweeter? An Empirical Analysis on the Effect of Affiliation on Productivity (July 1, 2009). CEIS Working Paper No. 141, Available at SSRN: https://ssrn.com/abstract=1428420 or http://dx.doi.org/10.2139/ssrn.1428420

Leonardo Becchetti (Contact Author)

University of Rome Tor Vergata - Faculty of Economics ( email )

Via Columbia, 2
I-00133 Rome
Italy

Stefano Castriota

University of Perugia ( email )

Via Pascoli 22
Perigoa, 06121
Italy

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