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Transaction costs, institutions and smallholder market integration: potato producers in Peru

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  • Maltsoglou, Irini
  • Tanyeri-Abur, Aysen

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.

Suggested Citation

  • Maltsoglou, Irini & Tanyeri-Abur, Aysen, 2005. "Transaction costs, institutions and smallholder market integration: potato producers in Peru," ESA Working Papers 289074, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    • Handle: RePEc:ags:faoaes:289074
    DOI: 10.22004/ag.econ.289074
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    Cited by:

    1. Justin Kyalo & Lawrence Njoroge, 2015. "Market Integration as a Determinant of Household Decision-Making in the Production of Roselle Plant in Mwea Sub-County," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(10), pages 249-259, October.
    2. Wanjala, Bernadette, 2016. "Can the big push approach end rural poverty in Africa? : Insights from Sauri millennium village in Kenya," Other publications TiSEM 5a686b22-6749-4e9e-8bf4-4, Tilburg University, School of Economics and Management.
    3. Fakudze, Bhekiwe Delisile, 2015. "An economic evaluation of the National Red Meat Development Programme in the Eastern Cape Province, South Aftrica," Research Theses 265579, Collaborative Masters Program in Agricultural and Applied Economics.
    4. Husmann, Christine, 2015. "Transaction Costs on the Ethiopian Formal Seed Market and Innovations for Encouraging Private Sector Investments," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 54(1), pages 1-18, February.

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