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Fair Trade Certification and Livelihoods: A Panel Data Analysis of Coffee-growing Households in India

Author

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  • Karki, Sabina Khatri
  • Jena, Pradyot Ranjan
  • Grote, Ulrike

Abstract

This study analyzes the participation decision and income impacts of fair-trade coffee certification on small-scale coffee producers in the Araku valley in India using panel data for 183 households and endogenous-switching and quantile regression methods. The results show that fair trade certification has a positive effect on income; the income of certified farmers is 17 percent higher on average than the income of uncertified coffee producers. Furthermore, fair trade certification has a “bottom of the pyramid” effect in that the largest income gains accrue to farmers in the poorer quantiles.

Suggested Citation

  • Karki, Sabina Khatri & Jena, Pradyot Ranjan & Grote, Ulrike, 2016. "Fair Trade Certification and Livelihoods: A Panel Data Analysis of Coffee-growing Households in India," Agricultural and Resource Economics Review, Cambridge University Press, vol. 45(3), pages 436-458, December.
    • Handle: RePEc:cup:agrerw:v:45:y:2016:i:03:p:436-458_00
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    Cited by:

    1. 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.
    2. Mrozek, Michał, 2022. "Indian Agriculture and Rural Economy in Terms of the COVID-19 Pandemic," Problems of World Agriculture / Problemy Rolnictwa Światowego, Warsaw University of Life Sciences, vol. 22(4), December.
    3. Akoyi, K.T. & Mitiku, F. & Maertens, M., 2018. "Is prohibiting child labour enough? Coffee certification and child schooling in Ethiopia and Uganda," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275958, International Association of Agricultural Economists.
    4. Sunil Khosla & Pradyot Ranjan Jena, 2022. "Analyzing vulnerability to poverty and assessing the role of universal public works and food security programs to reduce it: Evidence from an eastern Indian state," Review of Development Economics, Wiley Blackwell, vol. 26(4), pages 2296-2316, November.
    5. Sellare, Jorge, 2020. "New insights on the use of the Fairtrade social premium," GlobalFood Discussion Papers 304709, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    6. Karla Rubio‐Jovel, 2023. "The voluntary sustainability standards and their contribution towards the achievement of the Sustainable Development Goals: A systematic review on the coffee sector," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(6), pages 1013-1052, August.
    7. Knößlsdorfer, Isabel & Sellare, Jorge & Qaim, Matin, 2021. "Effects of Fairtrade on Farm Household Food Security and Living Standards," 2021 Conference, August 17-31, 2021, Virtual 315073, International Association of Agricultural Economists.
    8. Solfanelli, Francesco & Ozturk, Emel & Pugliese, Patrizia & Zanoli, Raffaele, 2021. "Potential outcomes and impacts of organic group certification in Italy: An evaluative case study," Ecological Economics, Elsevier, vol. 187(C).
    9. Iddrisu, Mubarak & Aidoo, Robert & Abawiera Wongnaa, Camillus, 2020. "Participation in UTZ-RA voluntary cocoa certification scheme and its impact on smallholder welfare: Evidence from Ghana," World Development Perspectives, Elsevier, vol. 20(C).

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