The Economics of Fair Trade
43 Pages Posted: 4 Aug 2014 Last revised: 15 Feb 2025
Date Written: July 2014
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. In this survey, we 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.
Suggested Citation: Suggested Citation
Dragusanu, Raluca and Giovannucci, Daniele and Nunn, Nathan, The Economics of Fair Trade (July 2014). NBER Working Paper No. w20357, Available at SSRN: https://ssrn.com/abstract=2475704
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