The Effect of Transaction Costs on The Benefits of Hybrid Maize Farming in Dompu District, West Nusa Tenggara

The characteristics of imperfect markets are characterized by the presence of transaction costs. One sector that is an imperfect market is the agricultural sector. The purpose of this study was to analyze the structure of transaction costs and the implications of transaction costs on the benefits of hybrid corn farming. The research method uses transaction cost analysis and multiple linear regression. The research was conducted in Dompu Regency, West Nusa Tenggara with 120 respondents as corn farmers. The results show that implementation costs are the component of transaction costs that have the highest percentage of 43.35%, then supervision costs are 28.37%, transportation costs are 20.61%, negotiation costs are 3.70%, information costs are 3.41% and coordination 0.57%. These transaction cost components are distributed in each hybrid corn farming cycle, among others; (1) birth cycle; (2) cropping cycle; (3) maintenance cycle; (4) supervision; (5) harvest cycle; and (6) postharvest cycle. The postharvest cycle is the cycle that has the highest percentage of 23.17%, then the maintenance cycle is 18.53%, the harvest cycle is 17.65%, the cropping cycle is 17.28% and the control cycle is 13.99%. Transaction costs have a positive and significant effect on the profits of hybrid corn farming.

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ANALISIS BIAYA TRANSAKSI JAGUNG HIBRIDA DI PROVINSI GORONTALO

SEPA Jurnal Sosial Ekonomi Pertanian dan Agribisnis ◽

10.20961/sepa.v11i1.42249 ◽

2011 ◽

Vol 11 (1) ◽

pp. 49

Author(s):

Mad Alfin A. ◽

Dwidjono Hadi Darwanto ◽

Soeratno Soeratno ◽

Slamet Hartono

Keyword(s):

Transaction Costs ◽

Transaction Cost ◽

Degradation Rate ◽

Farm Income ◽

Total Production ◽

Market Prices ◽

Hybrid Corn ◽

Regional Market ◽

Hybrid Maize ◽

On Farm

This study aims to count the transaction costs on farms of hybrid corn of dry seeds and analyze the factors that the transaction costs affect on farms of hybrid corn of dry seeds at through UPJ. This research was conducted in the Gorontalo province with samples in Gorontalo disctrict and Boalemo and using ekononometric equation analysis as a method of analysis. The results showed that the value of the average transaction costs on farm of hybrid corn of dry seed sales amounted to Rp1.545.466,- per transaction on per farming, and the factors that affect significantly the fault tolerance of 5 percent to the transaction cost on farms of hybrid corn of dry seeds sales consist of the total production, regional market prices, technical labor wages, commissions and degradation rate. The conclusions in this study stated that the total transaction costs incurred the hybrid maize of dry seeds farmers on sales is still high enough to reduce farm income and the factors that the transaction cost affect on sales of hybrid corn of dry seeds significantly includes the total production, regional market prices, technical labor wages, commissions and degradation rate. Penelitian ini bertujuan untuk menghitung biaya transaksi usahatani jagung hibrida pipilan kering dan menganalisis faktor-faktor yang mempengaruhi biaya transaksi usahatani jagung hibrida pipilan kering melalui penjualan ke UPJ. Penelitian ini dilakukan di Provinsi Gorontalo dengan sampel kabupaten Gorontalo dan kabupaten Boalemo dengan menggunakan analisis persamaan ekononometrika sebagai metode analisisnya. Hasil penelitian menunjukkan bahwa besaran biaya transaksi ratarata penjualan jagung hibrida pipilan kering sebesar Rp1.545.466,- per transaksi per usahatani, serta terdapat faktor-faktor yang mempengaruhi secara signifikan pada toleransi kesalahan 5 persen terhadap biaya transaksi penjualan jagung pipilan kering yang meliputi total produksi, harga pasar regional, upah tenaga teknis, komisi dan nilai degradasi. Kesimpulan dalam penelitian ini menyatakan bahwa total biaya transaksi yang dikeluarkan petani atas penjualan jagung pipilan kering masih cukup tinggi sehingga memperkecil pendapatan usahatani jagung hibrida, serta faktor-faktor yang mempengaruhi biaya transaksi penjualan jagung hibrida pipilan kering secara signifikan meliputi total produksi, harga pasar regional, upah tenaga teknis, komisi dan nilai degradasi.

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ANALISIS BIAYA TRANSAKSI USAHATANI PADI DI KECAMATAN BANGKINANG KABUPATEN KAMPAR

DINAMIKA PERTANIAN ◽

10.25299/dp.2019.vol35(2).7695 ◽

2021 ◽

Vol 35 (2) ◽

pp. 85-92

Author(s):

Ilma Satriana Dewi ◽

Septina Elida ◽

Dini Amalia Putri

Keyword(s):

Transaction Costs ◽

Transaction Cost ◽

Production Costs ◽

Rice Farming ◽

Information Costs ◽

The People ◽

Coordination Costs ◽

Implementation Costs ◽

Quantitative Descriptive ◽

Almost All

The rice plant is one of the agricultural products and is a major food for almost all the people of Indonesia. Farming capital is the production cost that will be spent by farmers during the production process. However, in addition to production costs, there are other costs unwittingly incurred by farmers which are also related to their farming activities. These costs are known as transaction costs. The purpose of this study was to analyze components and total transaction costs and the effect of transaction costs on economic efficiency of rice farming. The data were analyzed using descriptive qualitative and quantitative descriptive approaches. Transaction cost was analyzed by using transaction cost analysis. The results showed that the components of rice farming transaction costs along with their ratio consisting of information costs (0,05), negotiation costs (0,02), coordination costs (0,79), implementation costs (0,03), risk costs (0,08) and transportation costs (0,03). The effect of transaction costs on revenue was seen from the ratio value which wais equal to 0,009. Meanwhile, the factors that significantly affect transaction costs were farming experience and subscription.

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Analisis Persepsi dan Biaya Transaksi Terhadap Sumber Kredit Usaha Pengolahan Ikan Asin

Forum Agribisnis ◽

10.29244/fagb.11.1.1-12 ◽

2021 ◽

Vol 11 (1) ◽

pp. 1-12

Author(s):

Nurul Maulina ◽

Dwi Rachmina ◽

Suprehatin Suprehatin

Keyword(s):

Transaction Costs ◽

Transaction Cost ◽

Analysis Method ◽

Information Costs ◽

Formal Institutions ◽

Cost Component ◽

Informal Credit ◽

Average Value ◽

Salted Fish ◽

Credit Institutions

The growth and development of MSMEs are hampered due to capital constraints, so that MSMEs need other sources of capital to meet their business needs, one of which is with credit. In Muara Angke Traditional Fisheries Processing (PHPT) there are formal and informal credit institutions. The decision-making process of which credit institution will be chosen is determined by the processor's perception of the two institutions, where each institution will incur different transaction costs incurred by salted fish processors. The purpose of this study was to analyze the perceptions of salted fish processors on credit institutions and the amount of credit transaction costs incurred. The perceptual analysis uses the importance-performance analysis method and transaction costs are calculated using the transaction cost analysis method. The total sample of 72 salted fish processing business units in PHPT Muara Angke. The results showed that based on the criteria of processing perceptions of formal institutions better. This is indicated by the measurement of the average value of formal interests 4,48, the average value of the performance of formal institutions is 4,04 while the average value of the interests of non-formal institutions is 4,16 and the average value of the performance of non-formal institutions is 3,99. However, the transaction costs per loan period that must be issued by processors with formal credit (Rp 126.750) are greater than the transaction costs incurred by processors with non-formal credit (Rp 15.434). The largest transaction cost component informal credit is implementation costs (62,60 per cent), while informal credit is information costs (36,37 per cent).

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Transaction Cost Economics Identification in Malaysian Housing Development: A Preliminary Review

International Journal of Sustainable Construction Engineering Technology ◽

10.30880/ijscet.2021.12.01.021 ◽

2021 ◽

Vol 12 (1) ◽

Author(s):

Farah Kamilah Zainuddin ◽

◽

Muzani Mustapa ◽

Fara Diva Mustapa ◽

◽

...

Keyword(s):

Transaction Costs ◽

Transaction Cost ◽

Best Practice ◽

Development Process ◽

Transaction Cost Economics ◽

Housing Prices ◽

Preliminary Finding ◽

Housing Development ◽

Preliminary Review ◽

Cost Components

Shelter, albeit being one of the crucial physiological needs in Maslow’s Hierarchy of Needs, is still considered as luxury needs as many people still struggle to afford a house especially in Malaysia. The issue stemmed from the mismatch between the affordability level and the housing prices. Many research delved from the demand and supply perspective to find the root cause, however, the problem still prevails. Hence, this research aimed to study the aforementioned issue from the transaction cost economics (TCE)’s perspective. TCE provides a platform to allow parties to deduce the invisible costs from transaction of activities. This can be done by determining the effectiveness of each transaction profile by enhancing the value between the two transactions, hence, lower the costs. This paper outlined a preliminary finding on TCE’s identification in typical housing development process based on RIBA Plan of Work 2013 process protocol. RIBA Plan of Work 2013 was chosen to provide a standard platform of measurement to ensure consistency in activities listed in the pre-contract and post-contract in typical housing development process. Interviews were conducted with purposive sampling with individuals working directly with housing development. The respondents were asked to verify the list of pre-determined TCEs by indicating whether those activities constitute under the TCEs components and whether activities identified as redundant or inefficient can be removed or enhanced. Analysis conducted using the frequency analysis managed to determine the most important and also the most redundant transaction cost components in a typical housing development. The findings revealed an interesting fact where the number of transaction cost components at both pre and post-contract were higher than the anticipated number attained from literature review. Higher number of identified transaction cost components indicates higher transaction cost in housing development. This further suggested that certain activities which were found redundant or inefficient can be either removed or enhanced to lower the transaction costs. The research findings provide a useful platform to further verify the TCE in housing development. The components will be quantified to ultimately develop a framework for a best practice transaction cost economics model to apprehend unaffordable housing issues. Hence, it is noteworthy that combining TCE and Lean Management theory will enhance this on-going research on identification and quantification of the transaction costs within the housing development to address matters that cause high transaction costs that subsequently increases the housing prices.

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THEORY OF CONTRACTS IN THE LIGHT OF NEW INSTITUTIONAL ECONOMICS. THE SPECIFICITY OF AGRICULTURAL CONTRACTS

Acta Scientiarum Polonorum - Oeconomia ◽

10.22630/aspe.2018.17.4.56 ◽

2018 ◽

Vol 17 (4) ◽

pp. 97-104

Author(s):

Marzena Lemanowicz

Keyword(s):

Economic Theory ◽

Transaction Costs ◽

Transaction Cost ◽

Institutional Economics ◽

Agricultural Sector ◽

Transaction Cost Economics ◽

New Institutional Economics ◽

Economic Literature ◽

Contract Signing

The article reviews Polish and foreign economic literature regarding new institutional economics (NIE) and various research approaches used in the framework of NIE. Particular attention was paid to the economic theory of contracts and the transaction costs, as the limitation of transaction costs is indeed the main stimulus for contract signing. Special attention was given to agricultural contracts and their specificity. The article discusses different theories applied in the analysis of contracts, characterizes contracts according to different criteria, and draws attention to the importance of transaction costs in the theory of contracts. In addition, factors which contribute to these costs have been identified, indicating the necessity of adapting the principles of transaction cost economics to the needs of the agricultural sector.

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Effect of Transaction Costs on Profit and the Capital Formation of Soybean Farming in Lamongan Regency, East Java

AGRARIS Journal of Agribusiness and Rural Development Research ◽

10.18196/agraris.v7i1.4427 ◽

2021 ◽

Vol 7 (1) ◽

pp. 111-126

Author(s):

Hardiyanti Sultan ◽

Dwi Rachmina ◽

Anna Fariyanti

Keyword(s):

Transaction Costs ◽

Simple Random Sampling ◽

Capital Formation ◽

Simultaneous Equation ◽

Information Costs ◽

Cost Component ◽

Land Vehicles ◽

Household Data ◽

Coordination Costs ◽

Implementation Costs

Transaction costs was one of imperfect market characteristic. The transaction costs of soybean farming affected profit level, and profit was one factor of capital formation. This research aimed to analyze the structure and the effect of transaction costs on the profitability and the capital formation of soybean farming. This study applied transaction cost analysis and simultaneous equation as the methods. The respondents were determined using simple random sampling by taking the proportion of 25% for the three selected districts, resulting in 120 respondents. The data were the transaction costs in 2014/2015 and household data from 2012 to 2014, comprising the assets of land, vehicles, farm equipment, crop, and livestock. The results revealed that the transaction costs were IDR 144,120.86. The negotiation costs became the highest cost component (60.30%), followed by information costs (14.07%), coordination costs (12.22%), implementation costs (8.03%), monitoring costs (4.23%) and risk costs (1.15%). Transaction costs had a significant effect on the profitability of soybean farming. The highest percentage of capital formation on soybean farming was for farmland, reaching 40.43%. Other capitals included vehicles (24.59%), plants (19.31%), building (7.37%), and supporting tools (3.09%). Transaction costs did not significantly effect on farming capital formation. As a recommendation, collective action was required, farmers should be active on farmers groups to reduce transaction costs.

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Unbundling Transaction Cost Components in Building Information Modeling Adoption Procurement

International Journal of Recent Technology and Engineering - 2 ◽

10.35940/ijrte.b1077.0982s919 ◽

2019 ◽

Vol 8 (2S9) ◽

pp. 333-338

Keyword(s):

Transaction Costs ◽

Transaction Cost ◽

Building Information Modeling ◽

Transaction Cost Economics ◽

Project Performance ◽

Information Modeling ◽

Construction Disputes ◽

Building Information ◽

The Cost ◽

Cost Components

Building information modeling (BIM) adoption is an emerging trend in Malaysian construction industry. BIM is expected to bring better project performance and address the various construction dilemmas stemmed from construction disputes. Construction disputes has been associated with high transaction costs, which subsequently increase overall project costs. Hence, BIM has been adopted in project procurement to address construction disputes for better project performance. Studying the transaction costs in BIM adoption procurement is deemed beneficial particularly when the ambiguity of a project performance is high. This is especially true when the number of projects adopting BIM is still comparatively small to ascertain the benefits of BIM. Transaction cost economics (TCE) is a theory and methodology for relatively evaluating the cost-effectiveness of institutional arrangements in managing transaction, and therefore, studying TCE in BIM adoption procurement can be beneficial. Such an effort can improve the understanding of the benefits of the transactions made. Previous research has managed to conclude that the traditional procurement resulted in higher transaction costs compared to the design-and-build procurement. Hence, this study attempts to identify the transaction costs in BIM adoption procurement. A systematic literature review was performed to investigate the TCE in procurement to profile the transaction costs and its components in BIM adoption procurement. The outcome of the systematic structured literature is a conceptual framework combining the “RIBA Plan of Work with BIM Overlay” developed by RICS with a refined transaction cost components categorisation. The framework is further classified into pre-contract and post-contract transaction cost components specifying the fixed and variable components, and either visible or hidden. It is believed that the unbundling of the components of transaction cost in BIM adoption procurement could provide a solid foundation in developing a guideline for industry players to better understand, apply, and manage BIM adoption procurement

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Will Transaction Costs and Economies of Scale Tip the Balance in Farm Size in Industrial Agriculture? An Illustration for Non-Food Biomass Production in Germany

Sustainability ◽

10.3390/su13020733 ◽

2021 ◽

Vol 13 (2) ◽

pp. 733

Author(s):

Lanjiao Wen ◽

Lioudmila Chatalova

Keyword(s):

Transaction Costs ◽

Transaction Cost ◽

Biomass Production ◽

Economies Of Scale ◽

Agricultural Sector ◽

Returns To Scale ◽

Cost Savings ◽

Farm Size ◽

Agricultural Producers ◽

Production Scale

The study investigates how the agricultural sector can respond to a growing non-food biomass demand. Taking Germany as an example, a stylized case of biomass production under conditions of technological advance and constantly growing demand is modelled. It is argued that biomass producers might seek to adjust their farm size by simultaneously optimizing benefits from the production scale and transaction cost savings, where transaction costs are measured using Data Envelopment Analysis. The results extend the debate on transaction costs and structural change in agriculture by revealing a possible synergy and trade-off between transaction cost savings and benefits from (dis)economies of scale. They show that if larger farms cannot economize on transaction costs, then investments in land and labor, needed to adjust to higher biomass demand, partly compromise the returns to scale, which decelerates the farm size growth. A higher degree of asset specificity gives rise to transaction costs and reduces the rate at which the farm size decreases. Smaller producers may disproportionally benefit from their higher potential of transaction cost savings, if advanced technologies can offset the scale advantage of larger farms. The findings inform policymakers to consider this complex effect when comparing the opportunities of smaller and larger agricultural producers in the bioeconomy.

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From transaction costs to transaction value: Overcoming the frictional paradigm

Voprosy Ekonomiki ◽

10.32609/0042-8736-2020-8-51-81 ◽

2020 ◽

pp. 51-81

Author(s):

D. P. Frolov

Keyword(s):

Transaction Costs ◽

Transaction Cost ◽

Path Dependence ◽

Transaction Cost Economics ◽

Cost Minimization ◽

Low Cost ◽

Coase Theorem ◽

Transactional Analysis ◽

Transaction Sector ◽

Transaction Value

The transaction cost economics has accumulated a mass of dogmatic concepts and assertions that have acquired high stability under the influence of path dependence. These include the dogma about transaction costs as frictions, the dogma about the unproductiveness of transactions as a generator of losses, “Stigler—Coase” theorem and the logic of transaction cost minimization, and also the dogma about the priority of institutions providing low-cost transactions. The listed dogmas underlie the prevailing tradition of transactional analysis the frictional paradigm — which, in turn, is the foundation of neo-institutional theory. Therefore, the community of new institutionalists implicitly blocks attempts of a serious revision of this dogmatics. The purpose of the article is to substantiate a post-institutional (alternative to the dominant neo-institutional discourse) value-oriented perspective for the development of transactional studies based on rethinking and combining forgotten theoretical alternatives. Those are Commons’s theory of transactions, Wallis—North’s theory of transaction sector, theory of transaction benefits (T. Sandler, N. Komesar, T. Eggertsson) and Zajac—Olsen’s theory of transaction value. The article provides arguments and examples in favor of broader explanatory possibilities of value-oriented transactional analysis.

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On a Fallacy in the Coase Theorem and the Theorem of Transaction Costs Substitution

Man and the Economy ◽

10.1515/me-2020-0013 ◽

2020 ◽

Vol 0 (0) ◽

Author(s):

Steven N. S. Cheung

Keyword(s):

Transaction Costs ◽

Transaction Cost ◽

Coase Theorem ◽

Economic Institutions ◽

General Version ◽

Historical Account ◽

Rent Dissipation

AbstractThis paper first presents a historical account of the origin of the Coase Theorem. It then elaborates its significance in explaining the working of economic institutions. After expounding the concepts of transaction cost and rent dissipation, it points out an error in the Coase Theorem. Lastly, the paper propounds the Theorem of Transaction Costs Substitution as an extended and general version of the Coase Theorem.

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