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Transaction Costs, Institutions and Smallholder Market Integration: Potato Producers in Peru

Irini Maltsoglou and Aysen Tanyeri-Abur

No 05-04, Working Papers from Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA)

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.

Keywords: Household behavior; family economics; Organizational behavior; Transaction costs; Property rights; Micro analysis of farm firms; Farm households; and Farm input markets; Agricultural markets; marketing. (search for similar items in EconPapers)
JEL-codes: D1 D23 O12 O13 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2005
New Economics Papers: this item is included in nep-agr and nep-mkt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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