The e¤ects of Fair Trade when productivity di¤erences matter
نویسنده
چکیده
This paper uses a heterogeneous rms model to scrutinize the alleged aim of Fair Trade to help the most disadvantaged producers in developing countries. Incorporating important aspects of Fair Trade in a two-good heterogeneous rm model we show that the more productive rms will join Fair Trade arrangements. Presuming that the least advantaged producers are those with lowest productivity, it thus appears that Fair Trade cannot live up to its expectations.
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تاریخ انتشار 2017