Transaction cost economics and agricultural co-operatives: a Hungarian case study

Gábor G. Szabó; Imre Fertő

Transaction cost economics and agricultural co-operatives: a Hungarian case study

In: Dynamics in chains and networks

Authors:

Gábor G. Szabó

Gábor G. Szabó Hungarian Academy of Sciences, Institute of Economics, Budaörsi út 45, H-1112 Budapest, Hungary

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Imre Fertő

Imre Fertő Hungarian Academy of Sciences, Institute of Economics, Budaörsi út 45, H-1112 Budapest, Hungary

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Type:: Chapter

Pages:: 245–251

DOI:: https://doi.org/10.3920/9789086865260_030

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The paper analyzes the advantages and limitations of co-operatives for establishing appropriate vertical co-ordination forms in the framework of New Institutional Economics. We focus mainly on transaction cost theory explanations in discussing the advantages of carrying out vertical integration by establishing agricultural marketing co-operatives. Our case study shows that at the current stage of development in Hungarian agriculture, marketing type co-operatives can solve some problems arising from missing and embryonic market institutions. Empirical analysis supports some of the predictions of TCE.

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Dynamics in chains and networks

E-Book ISBN:: 9789086865260

Publisher:: Wageningen Academic

Print Publication Date:: 10 Oct 2004

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- Life Sciences

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Transaction cost economics and agricultural co-operatives: a Hungarian case study

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Dynamics in chains and networks

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