A Research into the Contract Connection Means between Farmers and Market--The Application and Perfection of the Theoretical Framework ofTransaction Cost Economics
A Research into the Contract Connection Means between Farmers and Market--The Application and Perfection of the Theoretical Framework ofTransaction Cost Economics
TANG Hao
(College of Economics and Management, China Agricultural University, Beijing 100083, China)
Abstract Using the theoretical framework of transaction cost economics, the author gives a unified explanation of the causes of the formation of the various contract connection means between farmers and market. The transaction contracts between farmers and market should take commodity contract, hybrid contract and elements contract respectively depending on asset specificity, uncertainty and transaction frequency, and adopt market governance, bilateral or trilateral governance and unified governance correspondingly. However, the theoretical framework of transaction cost economics has its defects. It can not explain why different contract connection means arise between farmers and market under the condition of roughly the same trade environment and trade characteristics. It can be reasonably explained only if the entrepreneurship of the market mainstay is included in the analysis framework. The contracts between farmers and market must follow the economic laws and training and stimulating the entrepreneurship of the market mainstay, especially farmer entrepreneurs, should be attached more importance
TANG Gao. A Research into the Contract Connection Means between Farmers and Market--The Application and Perfection of the Theoretical Framework ofTransaction Cost Economics. Economic Survey, 2011, 28(3): 0113.
2011, Vol. 28 
