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The ‘New Institutional Economics’ In Agricultural Development: Insights And Challenges

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  • Michael Hubbard

Abstract

The insights of the ‘new institutional economics’ (NIE) and the challenges it faces are discussed, using examples from agricultural development. NIE has emerged from the theories of the firm, markets, history and politics. It is characterised by two propositions: (i) the nature of business contracts is determined by uncertainties and assurances arising from market conditions and from prevailing institutions (property rights, conventions, authority structures); (ii) prevailing institutions are altered by social action responding ultimately to trend changes in relative prices. Empirical progress in NIE has resulted from studies of contracting behaviour and has been greatest in measurement of intraindustry transaction costs and relating them to vertical integration among firms. But NIE is at an early stage in the more complex empirical task of analysing relations between markets and prevailing institutions.

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  • Michael Hubbard, 1997. "The ‘New Institutional Economics’ In Agricultural Development: Insights And Challenges," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1‐3), pages 239-249, January.
    • Handle: RePEc:bla:jageco:v:48:y:1997:i:1-3:p:239-249
    DOI: 10.1111/j.1477-9552.1997.tb01148.x
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    Cited by:

    1. Bourgeois, Robin, 2007. "Towards the Emergence of Constitutive Rules for Equitable Agribusiness Value Chains," 106th Seminar, October 25-27, 2007, Montpellier, France 7923, European Association of Agricultural Economists.
    2. Antia-Obong, Essien Akpan & Hubbard, Carmen & Garrod, Guy, 2016. "My lived experience should also explain my market choice: Mixing methods to examine the influence of transaction cost on live chicken sales in Nigeria," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236335, Agricultural Economics Society.
    3. Zezza, Alberto & Llambi, Luis, 2002. "Meso-Economic Filters Along the Policy Chain: Understanding the Links Between Policy Reforms and Rural Poverty in Latin America," World Development, Elsevier, vol. 30(11), pages 1865-1884, November.
    4. Javier Escobal, 2000. "Costo de transacción en la agricultura peruana: una primera aproximación a su medición e impacto," Otras investigaciones, Consorcio de Investigación Económica y Social.
    5. Krassimira Kuneva, 2001. "Institutional Changes as a Driving Force for Structural Reforms in the Transforming Economies," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 77-89.
    6. Winter-Nelson, Alex & Temu, Anna, 2002. "Institutional Adjustment and Transaction Costs: Product and Inputs Markets in the Tanzanian Coffee System," World Development, Elsevier, vol. 30(4), pages 561-574, April.
    7. Okello, Julius J. & Kirui, Oliver K. & Gitonga, Zachary M. & Njiraini, Georgina W. & Nzuma, Jonathan M., 2014. "Determinants of Awareness and Use ICT-based Market Information Services in Developing-Country Agriculture: The Case of Smallholder Farmers in Kenya," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 53(3), pages 1-20, August.
    8. Stefano Ciliberti & Angelo Frascarelli & Gaetano Martino, 2020. "Drivers of participation in collective arrangements in the agri‐food supply chain. Evidence from Italy using a transaction costs economics perspective," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(3), pages 387-409, September.
    9. Gachukia, Martin Kang’ethe, 2015. "Moderating effect of traceability on value chain governance of credence goods: a perspective of the New Institutional Economics framework," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 117(2), pages 1-9, August.
    10. Kirui, Oliver K., 2013. "Drivers of Collective Action and the Welfare Gains of such Initiatives among smallholder farmers: Experiences from Kenya," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 161619, African Association of Agricultural Economists (AAAE).
    11. Sebastian Stępień & Jan Polcyn & Michał Borychowski, 2021. "Determinanty zrównoważonego rozwoju ekonomiczno-społecznego rodzinnych gospodarstw rolnych w Polsce," Ekonomista, Polskie Towarzystwo Ekonomiczne, issue 1, pages 56-86.
    12. Ofei-Mensah, Albert & Bennett, Jeff, 2013. "Transaction costs of alternative greenhouse gas policies in the Australian transport energy sector," Ecological Economics, Elsevier, vol. 88(C), pages 214-221.
    13. Irini Maltsoglou & Aysen Tanyeri-Abur, 2005. "Transaction Costs, Institutions and Smallholder Market Integration: Potato Producers in Peru," Working Papers 05-04, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    14. Kingwell, Ross S., 2003. "Institutional change and plant variety provision in Australia," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57905, Australian Agricultural and Resource Economics Society.
    15. Sebastian Stępień & Jan Polcyn & Michał Borychowski, 2021. "Determinanty zrównoważonego rozwoju ekonomiczno-społecznego rodzinnych gospodarstw rolnych w Polsce," Ekonomista, Polskie Towarzystwo Ekonomiczne, vol. 1, pages 56-86, January.
    16. Okello, Julius Juma & Kirui, Oliver K. & Gitonga, Zachary, 2012. "A Triple Hurdle Analysis of the Use of Electronic-Based Agricultural Market Information Services: The Case of Smallholder Farmers in Kenya," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126804, International Association of Agricultural Economists.
    17. Vuylsteke, Anne & Van Huylenbroeck, Guido, 2007. "Understanding the System Context of Alternative Food Supply Chains," 2007 1st Forum, February 15-17, 2007, Innsbruck, Austria 6610, International European Forum on System Dynamics and Innovation in Food Networks.
    18. Bazyli Czyżewski & Agnieszka Sapa & Piotr Kułyk, 2021. "Human Capital and Eco-Contractual Governance in Small Farms in Poland: Simultaneous Confirmatory Factor Analysis with Ordinal Variables," Agriculture, MDPI, vol. 11(1), pages 1-16, January.
    19. Zhang, Lei & Zhu, Xueqin & Heerink, Nico & Shi, Xiaoping, 2014. "Does output market development affect irrigation water institutions? Insights from a case study in northern China," Agricultural Water Management, Elsevier, vol. 131(C), pages 70-78.
    20. Etongo, Daniel & Djenontin, Ida Nadia S. & Kanninen, Markku & Fobissie, Kalame & Korhonen-Kurki, Kaisa & Djoudi, Houria, 2015. "Land tenure, asset heterogeneity and deforestation in Southern Burkina Faso," Forest Policy and Economics, Elsevier, vol. 61(C), pages 51-58.

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