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Title: The effects of Fair Trade when productivity differences matter
Author(s): Vaal, A. de
Publication year: 2012
Number of Pages: 21 p.
Annotation: DEGIT XVII Conference, 13 september 2012
University of Milan, Milan : [S.n.]
Publication type: Conference lecture

Please use this identifier to cite or link to this item : https://hdl.handle.net/2066/162783   https://hdl.handle.net/2066/162783

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Subject: Distributional Conflicts in a Globalizing World: Consequences for State-Market-Civil Society Arrangements
Organization: Internationale economie
Abstract:
This paper uses a heterogeneous rms model to scrutinize the alleged aim of Fair Trade to help the most disadvantaged producers in developing countries. Incorpo- rating important aspects of Fair Trade in a two-good heterogeneous rm model we show that the more productive rms will join Fair Trade arrangements. Presum- ing that the least advantaged producers are those with lowest productivity, it thus appears that Fair Trade cannot live up to its expectations.

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