NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Raluca E. Dragusanu

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New York, NY 10128

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NBER Working Papers and Publications

January 2018The Effects of Fair Trade Certification: Evidence from Coffee Producers in Costa Rica
with Nathan Nunn: w24260
We study the effects of Fair Trade (FT) certification of coffee on producers and households in Costa Rica. Examining the production dynamics of the universe of Costa Rican coffee mills from 1999–2014, we find that FT certification is associated with a higher sales price, greater sales, and more revenues. These effects are greater when global coffee prices are lower and the FT guaranteed minimum price is binding. Looking at households, we find robust evidence that FT is associated with higher incomes for farm owners. Part of this is due to a transfer of incomes from farm owners to intermediaries whose incomes decrease due to FT. We find no effect of FT on unskilled workers, who are the more disadvantaged group within the coffee sector.
July 2014The Economics of Fair Trade
with Daniele Giovannucci, Nathan Nunn: w20357
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.

Published: 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

 
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