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To contract or not in the food sector of transition economies? Evidence from the dairy sector in FYROM

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  • Tuna, Emelj
  • Karantininis, Konstantinos
  • Surry, Yves

Abstract

Countries still confronted with transition process express different patterns of contractual arrangements in the agricultural sector. The inefficiencies in their legal systems and problems with contracts enforcement in many instances force informal contracting arrangements instead. This paper empirically tests the transaction cost specifics determining the presence or absence of contracts to regulate transactions between the dairy farmers and their processing partners in the Former Yugoslav Republic of Macedonia (FYROM). In order to stimulate investments and initiate progress in this sector, it is necessary to establish tighter coordination trough long-term formal contracts which will eliminate the present uncertainties and risks.

Suggested Citation

  • Tuna, Emelj & Karantininis, Konstantinos & Surry, Yves, 2014. "To contract or not in the food sector of transition economies? Evidence from the dairy sector in FYROM," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182860, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae14:182860
    DOI: 10.22004/ag.econ.182860
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    References listed on IDEAS

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    1. Kristine Van Herck & Nivelin Noev & Johan F.M. Swinnen, 2012. "Institutions, exchange and firm growth: evidence from Bulgarian agriculture," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 39(1), pages 29-50, February.
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    Keywords

    Institutional and Behavioral Economics;

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