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

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  • Balineau, Gaëlle

Abstract

The increasing importance of premium segments and private labels raise skepticism about the ability of Fair Trade to help smallholders compete in high value-added markets. Using panel data collected in Mali, this paper contributes to the debate by estimating the impact of Fairtrade certification on the quality of Malian cotton. Controlling for the nonrandom certification of producers, results show a significant impact on the quality of cotton produced by both certified and geographically close noncertified growers via spillover effects. The analysis suggests that contract farming enforced by third-parties and demonstration effects foster the adoption of innovative agricultural practices.

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  • Balineau, Gaëlle, 2013. "Disentangling the Effects of Fair Trade on the Quality of Malian Cotton," World Development, Elsevier, vol. 44(C), pages 241-255.
    • Handle: RePEc:eee:wdevel:v:44:y:2013:i:c:p:241-255
    DOI: 10.1016/j.worlddev.2012.12.005
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    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.
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    14. Bellemare, Marc F. & Bloem, Jeffrey R., 2018. "Does contract farming improve welfare? A review," World Development, Elsevier, vol. 112(C), pages 259-271.

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    More about this item

    Keywords

    fair trade; impact; innovation adoption; cotton; Africa; Mali;
    All these keywords.

    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

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