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Institutional path dependence: The price of Fairtrade?

Gahnberg, Carl LU (2012) NEKH01 20121
Department of Economics
Abstract (Swedish)
Fairtrade has become a familiar trademark for most consumers in the developed world and represents an option for the buyer to purchase a product that has been certified to follow the ethical standards of ”fair” trade. This branding has received much critique over the last years concerning Fairtrade's ability to improve the lives of small producers in the developing world. This thesis derives from the theories developed within New Institutional Economics (NIE), which emphasizes the understanding of institutions development as a key factor for analyzing long-term economic growth. By constructing an analytical framework of institutional change this thesis theoretically analyses the impact of Fairtrade’s policies on local credit markets. It... (More)
Fairtrade has become a familiar trademark for most consumers in the developed world and represents an option for the buyer to purchase a product that has been certified to follow the ethical standards of ”fair” trade. This branding has received much critique over the last years concerning Fairtrade's ability to improve the lives of small producers in the developing world. This thesis derives from the theories developed within New Institutional Economics (NIE), which emphasizes the understanding of institutions development as a key factor for analyzing long-term economic growth. By constructing an analytical framework of institutional change this thesis theoretically analyses the impact of Fairtrade’s policies on local credit markets. It concludes that the impact of Fairtrade is highly dependent on the initial conditions and could both increase and lower the incentives of changing the institutional framework. (Less)
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author
Gahnberg, Carl LU
supervisor
organization
course
NEKH01 20121
year
type
M2 - Bachelor Degree
subject
keywords
TCE, Fairtrade, Credit, Institutions, Path dependence
language
English
id
2431185
date added to LUP
2012-04-10 10:23:33
date last changed
2012-04-10 10:23:33
@misc{2431185,
  abstract     = {Fairtrade has become a familiar trademark for most consumers in the developed world and represents an option for the buyer to purchase a product that has been certified to follow the ethical standards of ”fair” trade. This branding has received much critique over the last years concerning Fairtrade's ability to improve the lives of small producers in the developing world. This thesis derives from the theories developed within New Institutional Economics (NIE), which emphasizes the understanding of institutions development as a key factor for analyzing long-term economic growth. By constructing an analytical framework of institutional change this thesis theoretically analyses the impact of Fairtrade’s policies on local credit markets. It concludes that the impact of Fairtrade is highly dependent on the initial conditions and could both increase and lower the incentives of changing the institutional framework.},
  author       = {Gahnberg, Carl},
  keyword      = {TCE,Fairtrade,Credit,Institutions,Path dependence},
  language     = {eng},
  note         = {Student Paper},
  title        = {Institutional path dependence: The price of Fairtrade?},
  year         = {2012},
}