Escobal, J. (2000). Costos de transacción en la agricultura peruana: una primera aproximación a su medición e impacto (Documento de trabajo Nº 30). Lima: GRADE.

The objective of this research is to empirically evaluate the factors that determine the market linkage strategies of agricultural producers in Peru.

It also studies the role of transaction costs in the behavior of rural households. In addition, the research proposes and implements a methodological proposal to quantify transaction costs.

The results show that transaction costs in the area under study (the districts of Pazos and Huaribamba, in Tayacaja, Huancavelica) are equivalent to 50 % of the sale value and are significantly higher (60 %) for producers connected to the market through mule tracks than for those linked to the market through carriage roads, confirming the importance of investment in rural road infrastructure. It is also confirmed that transaction costs are significantly higher for small producers than for large producers (67% versus 32% of the sales value). The results show that not only the distance or time to market are crucial variables to explain the market linkage strategy (i.e., how much to sell and to which market), but also various indicators such as the producer’s experience in the market where he operates, the stability of his relationships with the agents he trades with, and the resources he invests in obtaining relevant information and in monitoring compliance with the implicit contracts associated with the transactions carried out.