[go: up one dir, main page]

IDEAS home Printed from https://ideas.repec.org/p/fdi/wpaper/545.html
   My bibliography  Save this paper

Disentangling the Effects of Fair Trade on the Quality of Malian Cotton

Author

Listed:
  • Gaëlle BALINEAU

    (Agence française de développement (AFD))

Abstract
The increasing importance of premium segments and the proliferation of private labels and certification schemes raise skepticism about the ability of Fair Trade (FT) to help smallholders compete in high value-added markets. Based on a panel dataset collected in Mali in 2008, this paper contributes to the debate by estimating the impact of FT on the quality of Malian cotton. Controlling forselection bias and for a potential increase in quality prior to FT certification, results show a significant impact of FT on the quality of cotton produced by both certified and geographically close non-certified growers via spillover effects.

Suggested Citation

  • Gaëlle BALINEAU, 2012. "Disentangling the Effects of Fair Trade on the Quality of Malian Cotton," Working Papers P39, FERDI.
  • Handle: RePEc:fdi:wpaper:545
    as

    Download full text from publisher

    File URL: http://www.ferdi.fr/sites/www.ferdi.fr/files/publication/fichiers/WP39_Balineau_web.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Valkila, Joni, 2009. "Fair Trade organic coffee production in Nicaragua -- Sustainable development or a poverty trap?," Ecological Economics, Elsevier, vol. 68(12), pages 3018-3025, October.
    2. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    3. Beuchelt, Tina D. & Zeller, Manfred, 2011. "Profits and poverty: Certification's troubled link for Nicaragua's organic and fairtrade coffee producers," Ecological Economics, Elsevier, vol. 70(7), pages 1316-1324, May.
    4. Wendy Janssens, 2005. "Measuring Externalities in Program Evaluation," Tinbergen Institute Discussion Papers 05-017/2, Tinbergen Institute, revised 30 Mar 2006.
    5. Mara Fridell & Ian Hudson & Mark Hudson, 2008. "With Friends Like These: The Corporate Response to Fair Trade Coffee," Review of Radical Political Economics, Union for Radical Political Economics, vol. 40(1), pages 8-34, March.
    6. Ashenfelter, Orley C, 1978. "Estimating the Effect of Training Programs on Earnings," The Review of Economics and Statistics, MIT Press, vol. 60(1), pages 47-57, February.
    7. Kenneth Y. Chay & Patrick J. McEwan & Miguel Urquiola, 2005. "The Central Role of Noise in Evaluating Interventions That Use Test Scores to Rank Schools," American Economic Review, American Economic Association, vol. 95(4), pages 1237-1258, September.
    8. Torero, Maximo & Viceisza, Angelino C.G., 2016. "Potential collusion and trust: Evidence from a field experiment in Vietnam," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 11(1), pages 1-11.
    9. Barham, Bradford L. & Callenes, Mercedez & Gitter, Seth & Lewis, Jessa & Weber, Jeremy, 2011. "Fair Trade/Organic Coffee, Rural Livelihoods, and the "Agrarian Question": Southern Mexican Coffee Families in Transition," World Development, Elsevier, vol. 39(1), pages 134-145, January.
    10. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    11. Barham, Bradford L. & Weber, Jeremy G., 2012. "The Economic Sustainability of Certified Coffee: Recent Evidence from Mexico and Peru," World Development, Elsevier, vol. 40(6), pages 1269-1279.
    12. Ravallion, Martin, 2008. "Evaluating Anti-Poverty Programs," Handbook of Development Economics, in: T. Paul Schultz & John A. Strauss (ed.), Handbook of Development Economics, edition 1, volume 4, chapter 59, pages 3787-3846, Elsevier.
    13. Mr. Louis M. Goreux & Mr. Paul R Masson & Mr. Dhaneshwar Ghura & Mr. Ousmane Badiane, 2002. "Cotton Sector Strategies in West and Central Africa," IMF Working Papers 2002/173, International Monetary Fund.
    14. Raynolds, Laura T., 2009. "Mainstreaming Fair Trade Coffee: From Partnership to Traceability," World Development, Elsevier, vol. 37(6), pages 1083-1093, June.
    15. Poulton, Colin & Gibbon, Peter & Hanyani-Mlambo, Benjamine & Kydd, Jonathan & Maro, Wilbald & Larsen, Marianne Nylandsted & Osorio, Afonso & Tschirley, David & Zulu, Ballard, 2004. "Competition and Coordination in Liberalized African Cotton Market Systems," World Development, Elsevier, vol. 32(3), pages 519-536, March.
    16. Jonathan Guryan, 2004. "Desegregation and Black Dropout Rates," American Economic Review, American Economic Association, vol. 94(4), pages 919-943, September.
    17. Cameron,A. Colin & Trivedi,Pravin K., 2005. "Microeconometrics," Cambridge Books, Cambridge University Press, number 9780521848053, September.
    18. Hayes, M.G., 2008. ""Fighting the Tide: Alternative Trade Organizations in the Era of Global Free Trade"--A Comment," World Development, Elsevier, vol. 36(12), pages 2953-2961, December.
    19. LeClair, Mark S., 2008. ""Fighting the Tide: Alternative Trade Organizations in the Era of Global Free Trade"--A Reply," World Development, Elsevier, vol. 36(12), pages 2962-2965, December.
    20. Ashenfelter, Orley & Card, David, 1985. "Using the Longitudinal Structure of Earnings to Estimate the Effect of Training Programs," The Review of Economics and Statistics, MIT Press, vol. 67(4), pages 648-660, November.
    21. Leonardo Becchetti & Furio Camillo Rosati, 2007. "Global Social Preferences and the Demand for Socially Responsible Products: Empirical Evidence from a Pilot Study on Fair Trade Consumers," The World Economy, Wiley Blackwell, vol. 30(5), pages 807-836, May.
    22. David Tschirley & Colin Poulton & Patrick Labaste, 2009. "Organization and Performance of Cotton Sectors in Africa : Learning from Reform Experience," World Bank Publications - Books, The World Bank Group, number 2604.
    23. Weber, Jeremy G., 2011. "How much more do growers receive for Fair Trade-organic coffee?," Food Policy, Elsevier, vol. 36(5), pages 678-685.
    24. LeClair, Mark S., 2002. "Fighting the Tide: Alternative Trade Organizations in the Era of Global Free Trade," World Development, Elsevier, vol. 30(6), pages 949-958, June.
    25. Bacon, Christopher M., 2010. "Who decides what is fair in fair trade? The agri-environmental governance of standards, access, and price," Center for Global, International and Regional Studies, Working Paper Series qt8px4f62v, Center for Global, International and Regional Studies, UC Santa Cruz.
    26. Sebastian Galiani & Paul Gertler & Ernesto Schargrodsky, 2005. "Water for Life: The Impact of the Privatization of Water Services on Child Mortality," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 83-120, February.
    27. Dennis Yanchus & Xavier de Vanssay, 2003. "The Myth of Fair Prices: A Graphical Analysis," The Journal of Economic Education, Taylor & Francis Journals, vol. 34(3), pages 235-240, January.
    28. Edward Miguel & Michael Kremer, 2004. "Worms: Identifying Impacts on Education and Health in the Presence of Treatment Externalities," Econometrica, Econometric Society, vol. 72(1), pages 159-217, January.
    29. Becchetti, Leonardo & Costantino, Marco, 2008. "The Effects of Fair Trade on Affiliated Producers: An Impact Analysis on Kenyan Farmers," World Development, Elsevier, vol. 36(5), pages 823-842, May.
    30. Bolwig, Simon & Gibbon, Peter & Jones, Sam, 2009. "The Economics of Smallholder Organic Contract Farming in Tropical Africa," World Development, Elsevier, vol. 37(6), pages 1094-1104, June.
    31. Gaëlle Balineau & Ivan Dufeu, 2010. "Are Fair Trade Goods Credence Goods? A New Proposal, with French Illustrations [Les produits du Commerce Equitable sont-ils des biens de croyance ?]," Post-Print hal-02814413, HAL.
    32. Bacon, Christopher, 2005. "Confronting the Coffee Crisis: Can Fair Trade, Organic, and Specialty Coffees Reduce Small-Scale Farmer Vulnerability in Northern Nicaragua?," World Development, Elsevier, vol. 33(3), pages 497-511, March.
    33. Ronchi, Loraine, 2006. "Fairtrade and market failures in agricultural commodity markets," Policy Research Working Paper Series 4011, The World Bank.
    34. Kaplinsky, Raphael, 2006. "Revisiting the revisited terms of trade: Will China make a difference?," World Development, Elsevier, vol. 34(6), pages 981-995, June.
    35. Gaëlle Balineau & Ivan Dufeu, 2010. "Are Fair Trade Goods Credence Goods? A New Proposal, with French Illustrations," Journal of Business Ethics, Springer, vol. 92(2), pages 331-345, April.
    36. Arnould, Eric & Plastina, Alejandro & Ball, Dwayne, 2009. "Does Fair Trade Deliver on Its Core Value Proposition? Effects on Income, Educational Attainment, and Health in Three Countries," Staff General Research Papers Archive 39169, Iowa State University, Department of Economics.
    37. Gaëlle Balineau, 2011. "Le renforcement des organisations de producteurs de coton au Mali : enjeux, impact et leçons du commerce équitable pour la privatisation de la filière," Post-Print halshs-00666920, HAL.
    38. Ruben, Ruerd & Fort, Ricardo, 2012. "The Impact of Fair Trade Certification for Coffee Farmers in Peru," World Development, Elsevier, vol. 40(3), pages 570-582.
    39. Dan Goldhaber & Emily Anthony, 2007. "Can Teacher Quality Be Effectively Assessed? National Board Certification as a Signal of Effective Teaching," The Review of Economics and Statistics, MIT Press, vol. 89(1), pages 134-150, February.
    40. Heckman, James J & Smith, Jeffrey A, 1999. "The Pre-programme Earnings Dip and the Determinants of Participation in a Social Programme. Implications for Simple Programme Evaluation Strategies," Economic Journal, Royal Economic Society, vol. 109(457), pages 313-348, July.
    41. Jeremy G. Weber, 2012. "Social learning and technology adoption: the case of coffee pruning in Peru," Agricultural Economics, International Association of Agricultural Economists, vol. 43, pages 73-84, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chabé-Ferret, Sylvain, 2015. "Analysis of the bias of Matching and Difference-in-Difference under alternative earnings and selection processes," Journal of Econometrics, Elsevier, vol. 185(1), pages 110-123.
    2. Maja Tampe, 2018. "Leveraging the Vertical: The Contested Dynamics of Sustainability Standards and Labour in Global Production Networks," British Journal of Industrial Relations, London School of Economics, vol. 56(1), pages 43-74, March.
    3. Staricco, Juan Ignacio, 2017. "Transforming or Reproducing Conventional Socioeconomic Relations? Introducing a Regulationist Framework for the Assessment of Fairtrade," World Development, Elsevier, vol. 93(C), pages 206-218.
    4. Florence Lachet-Touya, 2019. "Relevance of potential supply structures in frameworks involving consumer's private information: the case of fair trade," Working Papers hal-02937902, HAL.
    5. Nicholas Minot & Loraine Ronchi, 2014. "Contract Farming," World Bank Publications - Reports 24249, The World Bank Group.
    6. Florence TOUYA, 2019. "Relationships and Nature of Contracts in the Distribution Structure for Responsible Trade," Working Papers 2018-2019_10, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Oct 2019.
    7. Gian Nicola Francesconi & Fleur Wouterse, 2022. "The potential of land shareholding cooperatives for inclusive agribusiness development in Africa," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(1), pages 161-176, March.
    8. Florence Lachet-Touya, 2019. "Relationships and nature of contracts in the distribution structure for responsible trade," Working Papers hal-02937865, HAL.
    9. Florence TOUYA, 2019. "Relevance of Potential Supply Structures in Frameworks involving Consumer's private Information: the Case of Fair Trade," Working Papers 2018-2019_12, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Aug 2019.
    10. Jaime DE MELO & Marcelo OLARREAGA, 2017. "Trade Related Institutions and Development," Working Papers P199, FERDI.
    11. Chabé-Ferret, Sylvain, 2012. "Matching vs Differencing when Estimating Treatment Effects with Panel Data: the Example of the Effect of Job Training Programs on Earnings," TSE Working Papers 12-356, Toulouse School of Economics (TSE).
    12. Auriol, Emmanuelle & Schilizzi, Steven G.M., 2015. "Quality signaling through certification in developing countries," Journal of Development Economics, Elsevier, vol. 116(C), pages 105-121.
    13. Joël Cariolle & David A Carroll, 2020. "Advancing digital frontiers in African economies: lessons learned from firm-level innovations," Working Papers hal-03118738, HAL.
    14. Bellemare, Marc F. & Bloem, Jeffrey R., 2018. "Does contract farming improve welfare? A review," World Development, Elsevier, vol. 112(C), pages 259-271.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ana C. Dammert & Sarah Mohan, 2015. "A Survey Of The Economics Of Fair Trade," Journal of Economic Surveys, Wiley Blackwell, vol. 29(5), pages 855-868, December.
    2. Giuliani, Elisa & Ciravegna, Luciano & Vezzulli, Andrea & Kilian, Bernard, 2017. "Decoupling Standards from Practice: The Impact of In-House Certifications on Coffee Farms’ Environmental and Social Conduct," World Development, Elsevier, vol. 96(C), pages 294-314.
    3. van Rijsbergen, Bart & Elbers, Willem & Ruben, Ruerd & Njuguna, Samuel N., 2016. "The Ambivalent Impact of Coffee Certification on Farmers’ Welfare: A Matched Panel Approach for Cooperatives in Central Kenya," World Development, Elsevier, vol. 77(C), pages 277-292.
    4. Chiputwa, Brian & Spielman, David J. & Qaim, Matin, 2015. "Food Standards, Certification, and Poverty among Coffee Farmers in Uganda," World Development, Elsevier, vol. 66(C), pages 400-412.
    5. Barham, Bradford L. & Weber, Jeremy G., 2012. "The Economic Sustainability of Certified Coffee: Recent Evidence from Mexico and Peru," World Development, Elsevier, vol. 40(6), pages 1269-1279.
    6. Bravo-Monroy, L. & Potts, S.G. & Tzanopoulos, J., 2016. "Drivers influencing farmer decisions for adopting organic or conventional coffee management practices," Food Policy, Elsevier, vol. 58(C), pages 49-61.
    7. Ibanez, Marcela & Blackman, Allen, 2016. "Is Eco-Certification a Win–Win for Developing Country Agriculture? Organic Coffee Certification in Colombia," World Development, Elsevier, vol. 82(C), pages 14-27.
    8. Ninon Sirdey & Sylvaine Lemeilleur, 2021. "Can fair trade resolve the “hungry farmer paradox”?," Review of Agricultural, Food and Environmental Studies, Springer, vol. 102(1), pages 81-106, March.
    9. Fikadu Mitiku & Yann De Mey & Jan Nyssen & Miet Maertens, 2017. "Do Private Sustainability Standards Contribute to Income Growth and Poverty Alleviation? A Comparison of Different Coffee Certification Schemes in Ethiopia," Sustainability, MDPI, vol. 9(2), pages 1-21, February.
    10. Vellema, W. & Buritica Casanova, A. & Gonzalez, C. & D’Haese, M., 2015. "The effect of specialty coffee certification on household livelihood strategies and specialisation," Food Policy, Elsevier, vol. 57(C), pages 13-25.
    11. Nindl, Elisabeth, 2014. "An empirical assessment of Fairtrade: A perspective for low-and middle-income countries?," Department of Economics Working Paper Series 160, WU Vienna University of Economics and Business.
    12. Elisabeth Nindl, 2014. "An empirical assessment of Fairtrade: A perspective for low- and middle-income countries?," Department of Economics Working Papers wuwp160, Vienna University of Economics and Business, Department of Economics.
    13. Raluca Dragusanu & Daniele Giovannucci & Nathan Nunn, 2014. "The Economics of Fair Trade," Journal of Economic Perspectives, American Economic Association, vol. 28(3), pages 217-236, Summer.
    14. Parvathi, Priyanka & Waibel, Hermann, 2015. "Is Organic Agriculture and Fair Trade Certification a way out of Crisis? Evidence from Black Pepper Farmers in India," 55th Annual Conference, Giessen, Germany, September 23-25, 2015 209209, German Association of Agricultural Economists (GEWISOLA).
    15. Thi Minh Chi Nguyen & Li-Hsien Chien & Shwu-En Chen, 2015. "Impact of certification system on smallhold coffee farms` income distribution in Vietnam," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 5(6), pages 137-149, June.
    16. Elisabeth Nindl, 2014. "An empirical assessment of Fairtrade: A perspective for low- and middle-income countries?," EcoMod2014 6866, EcoMod.
    17. Staricco, Juan Ignacio, 2017. "Transforming or Reproducing Conventional Socioeconomic Relations? Introducing a Regulationist Framework for the Assessment of Fairtrade," World Development, Elsevier, vol. 93(C), pages 206-218.
    18. Giordano Ruggeri & Stefano Corsi, 2021. "An Exploratory Analysis of the FAIRTRADE Certified Producer Organisations," World, MDPI, vol. 2(4), pages 1-14, October.
    19. Meemken, Eva-Marie & Spielman, David J. & Qaim, Matin, 2017. "Trading off nutrition and education? A panel data analysis of the dissimilar welfare effects of Organic and Fairtrade standards," Food Policy, Elsevier, vol. 71(C), pages 74-85.
    20. Beuchelt, Tina D. & Zeller, Manfred, 2011. "Profits and poverty: Certification's troubled link for Nicaragua's organic and fairtrade coffee producers," Ecological Economics, Elsevier, vol. 70(7), pages 1316-1324, May.

    More about this item

    JEL classification:

    • P45 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - International Linkages
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fdi:wpaper:545. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Vincent Mazenod (email available below). General contact details of provider: https://edirc.repec.org/data/ferdifr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.