Fair Trade phenomenon - limits of neoclassical and chances of heterodox economics

Abstract

Contemporary research exploring the Fair Trade movement does not provide a clear answer whether the overall impact of Fair Trade is positive or negative and what are the real motives of Fair Trade consumers. In the paper we investigate whether the assumptions of selected heterodox schools (feminist, ecological and humanist) fit better to the reality of the Fair Trade movement than those of the neoclassical theory. Although ‘better fitness’ does not necessarily mean ‘better explanation’, the mismatch with reality may constitute an obstacle in identifying a crucial aspect of the researched phenomenon (i.e. Fair Trade), harming explanation of its existence and development.