Organisation of Agrarian Transactions in Transitional Economies

Basic principles of the Translation Costs Economics have been incorporated to the agrarian economy. Agrarian transactions have been put on the centre of economic analysis. Critical dimensions of agricultural transaction have been determined. Structure of costs for alternative governance modes of transacting has been specified. Microeconomics factors for institutional development in transitional Bulgarian agriculture have been examined. Specific transitional agrarian structure has been determined by high level of asset specificity, big uncertainty and less frequency of transactions. Predominance of spot market transactions, big reliance on informal and interlinked transacting, great extend of integrated modes, part time farming and production cooperative phenomenon, block of credit and extension supply transactions, and strong necessity for third part involvement have been explained from transaction costs economising perspectives. Effective boundaries of market and private organisations of agrarian transactions have been determined, and framework for Government intervention has been worked out