Organisation of agrarian transactions in transitional economies

Bachev, Hrabrin (1996): Organisation of agrarian transactions in transitional economies. Published in: Redefining the Roles for European Agriculture No. 1 (3 September 1996): pp. 3-20.

Abstract

Basic principles of the Translation Costs Economics have been incorporated to the agrarian economy. Agrarian transactions have been put on the centre of economic analysis. Critical dimensions of agricultural transaction have been determined. Structure of costs for alternative governance modes of transacting has been specified. Microeconomics factors for institutional development in transitional Bulgarian agriculture have been examined. Specific transitional agrarian structure has been determined by high level of asset specificity, big uncertainty and less frequency of transactions. Predominance of spot market transactions, big reliance on informal and interlinked transacting, great extend of integrated modes, part time farming and production cooperative phenomenon, block of credit and extension supply transactions, and strong necessity for third part involvement have been explained from transaction costs economising perspectives. Effective boundaries of market and private organisations of agrarian transactions have been determined, and framework for Government intervention has been worked out.

• Item Type: MPRA Paper
• Language: English
• Keywords: New Institutional Economics, agrarian transactions, transaction costs, market, private, public, hybrid governance, transition, Bulgaria
• Subjects: Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q12 - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q13 - Agricultural Markets and Marketing ; Cooperatives ; Agribusiness; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q14 - Agricultural Finance; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q15 - Land Ownership and Tenure ; Land Reform ; Land Use ; Irrigation ; Agriculture and Environment; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q16 - R&D ; Agricultural Technology ; Biofuels ; Agricultural Extension Services; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q18 - Agricultural Policy ; Food Policy

References

Arrow K. Organisation of Economic Activities, 1969

Bachev H. Structures for Oragnsiation of Transations in Japanese Agriculture, NARC, Tsukuba, 1995.

Coase R. The Nature of the Firm, 1993

Hayami Y and Otsuka K. The Economics of Contract Choice, 1993

Milgrom P and Roberts J. Economic Organisation and Management, 1992

North D., Economic Performance through Time, 1994

Sporleder T. Managerial Economics of Verticaly Coordinated Agricultural Firms, 1992

Williamson O. The Economic Institutions of Capitalism, 1985