Management Theory and Studies for Rural Business and Infrastructure Development, Volume 35, Number 1

Evaluation of influence of the transactions costson farm's economic perfmance

Artūras Lakis

Abstract

While the body of descriptive and theoretical literature on transactions costs is extensive, the empirical literature has been lagging. The evaluation of the transactions costs in agriculture is important for two main reasons. Firstly, transactions costs in agriculture are very high. Secondly, European Union's Common Agricultural Policy aims to support these costs. The purpose of this paper is to assess Lithuanian farmers’ transactions costs related to commitments for support and determine their impact on the farm's economic performance. In this paper a comparative analysis of statistical data was performed. Data on transactions costs were collected through interviews with service providers and farmers. In this paper was described the theoretical literature, identified Lithuanian farmers’ transactions costs related to commitments for support, presented the impact of these costs on the farm's economic performance and provided recommendations related to further evaluation of transactions costs in agriculture.

JEL codes: B520, D230.

Keyword(s): agricultural sector, transactions costs


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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355

This journal is published under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License. Responsible editor: Dr Audrius Gargasas.