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Transaction Costs, Institutions and Smallholder Market Integration: Potato Producers in Peru

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  • Irini Maltsoglou
  • Aysen Tanyeri-Abur
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    Abstract

    The paper analyses the impacts of transaction costs on the degree of household market integration using survey data collected from smallholder potato farmers located in the Peruvian Andes. The analysis focuses on the impacts of transaction costs differentiated as information, negotiation and monitoring costs. Two proxies are used to measure the degree of market integration of households, namely quantity sold in the market and sales in large markets. The results show that, in addition to transport costs and market prices, information, negotiation and monitoring costs affect market integration. The study reinforces previous results and sheds light on possible policy options to support smallholders in improving their access to national and global markets.

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    File URL: ftp://ftp.fao.org/docrep/fao/008/ae876e/ae876e00.pdf
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    Bibliographic Info

    Paper provided by Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA) in its series Working Papers with number 05-04.

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    Length: 15 pages
    Date of creation: 2005
    Date of revision:
    Handle: RePEc:fao:wpaper:0504

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    Postal: Agricultural Sector in Economic Development Service FAO Viale delle Terme di Caracalla 00153 Rome Italy
    Phone: +39(6) 57051
    Fax: +39 06 57055522
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    Web page: http://www.fao.org/es/esa/
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    Related research

    Keywords: Household behavior; family economics; Organizational behavior; Transaction costs; Property rights; Micro analysis of farm firms; Farm households; and Farm input markets; Agricultural markets; marketing.;

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    1. Veblen, Thorstein, 1898. "Why Economics is not an Evolutionary Science," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 12.
    2. 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.
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