Institutional Innovations to Reduce High Transaction Costs and Risks in Smallholder Markets in Ghana

This article analyses institutional innovations to address high transaction costs and risks involved in the interaction between traders (agents) and smallholder farmers in rural markets of Ghana. A mixed methods design was used to collect data from participants. The findings from the study revealed possible institutional innovations to address high transaction costs and risks to facilitate smallholder farmers' market access in rural agricultural markers of Ghana. These include the introduction of a new contract farming arrangement, cooperative society, smallholder farmers’ participation in decision-making, and the government's direct intervention.