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

Elisabeth Nindl

Publication: Working/Discussion PaperWU Working Paper

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This paper presents the first cross-country empirical evidence on the determinants of participation
in Fairtrade and the impact of the export of Fairtrade certified products on
agricultural growth in low- and middle-income countries. Using the number of certified
producer organizations per country in 2006-2010 as a proxy for Fairtrade exports, estimation
results indicate a small but significantly positive effect on the growth rate of per
capita value added in agriculture that is largest in upper middle income countries. Given
the particularly poverty-reducing effect of agricultural growth, we find empirical evidence
that Fairtrade certification is indeed able to deliver its core values, but misses to target
the very poor. (author's abstract)
Original languageEnglish
Publication statusPublished - 2014

Publication series

SeriesDepartment of Economics Working Paper Series

WU Working Paper Series

  • Department of Economics Working Paper Series

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