Working Paper: NBER ID: w20357
Authors: Raluca E. Dragusanu; Daniele Giovannucci; Nathan Nunn
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.
Keywords: Fair Trade; Economic Theory; Empirical Evidence
JEL Codes: F10; O10
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Fair Trade Certification (F19) | Higher Prices for Producers (L11) |
| Fair Trade Certification (F19) | Higher Sales (D49) |
| Fair Trade Certification (F19) | Higher Incomes (D31) |
| Fair Trade Certification (F19) | No Increase in Wages for Hired Workers (J39) |
| Entrepreneurial Capacity (L26) | Fair Trade Certification (F19) |