IDEAS home Printed from https://ideas.repec.org/p/hhs/hastef/0083.html
   My bibliography  Save this paper

Small Industries and Institutional Framework: A Transaction Costs Approach

Author

Listed:
  • Ramamurthy, Bhargavi

    (Department of Economics)

  • Ronnås, Per

    (Department of Economics)

Abstract

There has been a revival of interest in small industries and their linkages with a nation's institutional arrangements, among both academicians and policy makers. Extending the definition of institutions to include formal and informal rules, this paper attempts to identify these linkages using the technique of transaction costs. Applying this to the economic environment of small firms in Taiwan and India it is found that transaction costs have been lower among Taiwanese small firms when compared to their Indian counterparts owing to certain institutional factors which have shaped its developmental history, the most important ones being the indirect intervention of the government, strong vertical linkages and a high level of human capital endowment. It is argued that the protectionist policy and other institutional factors in India perpetuated an institutional rigidity that worked to raise transaction costs for the small firm.

Suggested Citation

  • Ramamurthy, Bhargavi & Ronnås, Per, 1995. "Small Industries and Institutional Framework: A Transaction Costs Approach," SSE/EFI Working Paper Series in Economics and Finance 83, Stockholm School of Economics.
  • Handle: RePEc:hhs:hastef:0083
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Keywords

    Small industries; institutions; transaction costs; Taiwan; India;

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:hastef:0083. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helena Lundin). General contact details of provider: http://edirc.repec.org/data/erhhsse.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.