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"Fighting the Tide: Alternative Trade Organizations in the Era of Global Free Trade"--A Comment

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  • Hayes, M.G.

Abstract

Summary LeClair [LeClair, M. S. (2002). Fighting the tide: alternative trade organizations in the era of global free trade. World Development, 30(6), 949-958] concludes that in theory Fair Trade is a second-best alternative to aid, may impose losses on non-Fair Trade producers and prolongs dependence on unsustainable modes of production. This paper shows how these conclusions depend upon a particular definition of subsidy and upon the assumptions of full employment and that Fair Trade goods face price-inelastic demand. An adverse impact on non-Fair Trade producers is possible but not intrinsic, and the claim of economic inefficiency cannot be sustained within a more general analysis.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:wdevel:v:36:y:2008:i:12:p:2953-2961
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    References listed on IDEAS

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    1. Mark Hayes, 2007. "The Point of Effective Demand," Review of Political Economy, Taylor & Francis Journals, vol. 19(1), pages 55-80.
    2. 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.
    3. Mark Hayes, 2006. "On the efficiency of fair trade," Review of Social Economy, Taylor & Francis Journals, vol. 64(4), pages 447-468.
    4. 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.
    5. 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.
    6. Mark Hayes, 2006. "The Economics of Keynes: A New Guide to The General Theory," Books, Post Keynesian Economics Society (PKES), number nggt.
    7. M. G. Hayes, 2006. "The Economics of Keynes," Books, Edward Elgar Publishing, number 12601.
    8. Philip Booth & Linda Whetstone, 2007. "Half A Cheer For Fair Trade," Economic Affairs, Wiley Blackwell, vol. 27(2), pages 29-36, June.
    9. 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.
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    Cited by:

    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. Balineau, Gaëlle, 2013. "Disentangling the Effects of Fair Trade on the Quality of Malian Cotton," World Development, Elsevier, vol. 44(C), pages 241-255.
    3. Useche, Pilar & Blare, Trent, 2012. "Seeds of Gold: How Environmental Considerations Influence Cacao Production Decisions for Small Landholder Households in Northwestern Ecuador," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124738, Agricultural and Applied Economics Association.
    4. Goff, Sarah C., 2016. "Fair trade: global problems and individual responsibilities," LSE Research Online Documents on Economics 68285, London School of Economics and Political Science, LSE Library.
    5. Leonardo Becchetti & Vittorio Pelligra & Francesco Salustri, 2018. "The impact of redistribution mechanisms in the vote with the wallet game: experimental results," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 51(4), pages 595-619, December.
    6. Useche, Pilar & Blare, Trent, 2013. "Traditional vs. modern production systems: Price and nonmarket considerations of cacao producers in Northern Ecuador," Ecological Economics, Elsevier, vol. 93(C), pages 1-10.
    7. Zhang, Tong & Hu, Wuyang & Zhu, Zhanguo & Penn, Jerrod, 2023. "Consumer preference for food products addressing multiple dimensions of poverty: Evidence from China," Food Policy, Elsevier, vol. 115(C).
    8. Alex Nicholls, 2010. "Fair Trade: Towards an Economics of Virtue," Journal of Business Ethics, Springer, vol. 92(2), pages 241-255, April.
    9. Alastair M. Smith, 2009. "Evaluating The Criticisms Of Fair Trade," Economic Affairs, Wiley Blackwell, vol. 29(4), pages 29-36, December.

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