Fair Trade determinants in the period 2006-2016:
An analytical perspective based on Costa Rica's experience
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As a recent trade alternative to market products from vulnerable smallholder agricultural producers to the Global North, the Fair Trade network has had a very vigorous growth in the period 2006-2016, by which new opportunities have developed. Such an alternative is allowing globalized markets to use both the price floor and the social premium mechanisms as means to provide benefits to smallholder farmers in the Global South. It allows smallholder farmers to obtain obtain a stable, sustainable and equitable price, which eventually could provide more welfare and well-being to their lives. Costa ...
As a recent trade alternative to market products from vulnerable smallholder agricultural producers to the Global North, the Fair Trade network has had a very vigorous growth in the period 2006-2016, by which new opportunities have developed. Such an alternative is allowing globalized markets to use both the price floor and the social premium mechanisms as means to provide benefits to smallholder farmers in the Global South. It allows smallholder farmers to obtain obtain a stable, sustainable and equitable price, which eventually could provide more welfare and well-being to their lives. Costa Rica's experience in implementing Fair Trade mechanisms in coffee production is a very interesting example, which provides some clues to answer the main research question: Which have been the important determinants of Fair Trade in Costa Rica? Through an analytical perspective based on descriptive statistics and a robust econometric model, this research question is tested and verified, with very promising and revealing results.
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