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An empirical assessment of Fairtrade: A perspective for low- and middle-income countries? Vienna University of Economics and Business, Department of Economics Working Papers No. 160

2024/01/18 by Nindl, Elisabeth

paper · doi:10.57938/ae8bc7dd-8cbb-4d8b-ba83-eb77871d418c

Abstract

This paper presents the first cross-country empirical evidence on the determinants of participation <br/>in Fairtrade and the impact of the export of Fairtrade certified products on <br/>agricultural growth in low- and middle-income countries. Using the number of certified <br/>producer organizations per country in 2006-2010 as a proxy for Fairtrade exports, estimation <br/>results indicate a small but significantly positive effect on the growth rate of per <br/>capita value added in agriculture that is largest in upper middle income countries. Given <br/>the particularly poverty-reducing effect of agricultural growth, we find empirical evidence <br/>that Fairtrade certification is indeed able to deliver its core values, but misses to target <br/>the very poor. (author's abstract)

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