The Economics of Fair Trade
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.
We have received valuable comments from David Atkin, Michael Hiscox, Marc Muendler, Nina Pavcnik, and Andrea Podhorsky. We also thank Stephanie Cappa and Matthew Summers for valuable research assistance. Forthcoming in the Journal of Economic Perspectives. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
Raluca Dragusanu & Daniele Giovannucci & Nathan Nunn, 2014. "The Economics of Fair Trade," Journal of Economic Perspectives, American Economic Association, vol. 28(3), pages 217-36, Summer. citation courtesy of