Research On Fair Trade And Poverty Elimination

Since the colonial era,the problem of the gap between rich and poor in the world has always existed.Although there have been ODA and FDI attempting to change the current situation,these approaches have already lost their original meaning and even become a way for the rich to win over the poor.Fair trade is a new way to solve the phenomenon of unfairness in international trade.It does not exist between national governments,but only between producers and consumers,so it is called alternative trade.This study is based on the results of fair trade in international trade(import and export),and then discusses the effectiveness of fair trade and its purchase conditions.First,elaborate the relationship between free trade and poverty,explain the problem of poverty,and focus on why to deny the current aid(ODA and FDI).Secondly,introduce the meaning of fair trade and explain why fair trade is one of the ways to solve the problem of poverty.In Chapter 4,we will describe the operational mechanism,the capital preparation,the certification system and other issues of fair trade.And in Chapter 5,we will use the economic theory to focus on the analysis of fair trade,such as fair trade market role,externalities,etc.,to reveal the position of fair trade in economics-fair trade and the current free trade is different,which uniqueness is reflected as,in the consumer's purchase behavior,ethical consumption factors will play a very important role,which is consistent with the idea-"altruism" in the behavioral economics;simultaneously,through the provision of information to persuade consumers to carry out ethical consumption is consistent with the idea "libertarian paternalism".Finally,do the empirical analysis-through the panel data to analyze the validity of fair trade and its purchase conditions(ethical consumption),by analyzing the import and export volume of some countries' fair trade and some economic indicators.The following results can be drawn: fair trade is conducive to improving the level of living of the people in the country,and in terms of improving the level of poverty,foreign direct investment,access to official development assistance,etc.,to some extent,has no significant impact on developing countries,and even some possibility to exacerbate poverty;for some developed countries as fair trade importers,there is a significant link between the level of crime in the country(the degree of emphasis on education by their governments)and the import offair trade in the country,that is,the lower the crime rate in the fair trade country is(the higher the investment ratio is),the higher the proportion of fair trade products purchased is.