Abstract:
This paper presents cross-country empirical evidence on the determinants of participation in Fair Trade networks and the impact of the export of Fair Trade-certified products on marginalized producers in low- and middle-income countries. Using the number of certified producer organizations per country in 2006-2010 as a proxy for Fair Trade exports, preliminary results indicate a significantly positive effect on the growth rate of per capita value added in agriculture. Given the especially poverty-reducing effect of agricultural growth, FT is indeed able to deliver its core values, but misses to target the very poor in its present conception.
