 Recent Developments of Agricultural Markets in East AfricaTakashi Yamano, Yoko Kijima, Tomoya Matsumoto and Megumi Muto Chapter 15 in Community, Market and State in Development, 2010, pp 245-261 from Palgrave Macmillan Abstract: Abstract The importance of the working of community mechanisms in rural markets is recognized by many development economists. Professor Yujiro Hayami’s insightful field observations, based on the economic theories of games and transaction costs, have helped us understand the roles of community mechanisms in rural markets (Aoki and Hayami, 2001a; Hayami and Kikuchi, 2000; Hayami and Otsuka, 1993). He argues that the major barrier against the development of markets in developing economies is the absence of an effective mechanism to protect property rights and to enforce contracts (Aoki and Hayami, 2001b). This absence raises transaction costs, which may keep farm households out of markets by holding the farm-gate prices of crops below their reservation prices. Hayami (2009) points out, however, that the community mechanisms of contract enforcement based on mutual trust or social capital may significantly reduce transaction costs. Although his observations are mostly from Asian countries, his argument is also applicable to African rural markets. Keywords: Mobile Phone; Dairy Farmer; District Center; Reduce Transaction Cost; Agricultural Market (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-29501-8_15 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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