Complementarities of Transaction Costs Economics and Convention Economic Theory: a case study of honey agri-industrial system in Campo Grande - MS

Abstract

The theoretical framework developed by the Transaction Costs Economics has been used by several authors to improve the production system different actors’ relationships comprehension. However, Transaction Costs Theory application in agri-industrial Systems have been infrequently treated in scientific literature, especially in unstructured and incipient systems, such as beekeeping in the city of Campo Grande, in Mato Grosso do Sul - Brazil. In this way, this paper shows an analysis of conventions importance in transaction costs reduction at Honey Agri-industrial System in Campo Grande. To this finality, case studies were conducted using secondary and primary data (collected through interviews with production chain operators). Their results lead to the conclusion that, for this Agri-industrial System, convention theory is a useful approach to explanation of the production system governance mechanisms, characterized by market informal guarantees, structured on trust and reputation. Furthermore, the study showed that Convention Economic Theory complements the Transaction Costs Economics Theory, because it adds a new element to be considered in Agri- industrial Systems Transaction Costs Analyzes.