Agrotourism ́s institutional path in an Italian settlement

Abstract

This paper work conceptualizes the developmental process of agrotourism which starts from pre-existing rural properties and in which the lack of technology and the difficulties of training people would be limiting for development. Such limitations can be solved mostly by filling the institutional gaps that do not induce cooperative behavior among agents. Based on a qualitative field study conducted on rural organizations located in Venda Nova do Imigrante (State of Espírito Santo, Brazil), we were able to capture the institutional path associated with the development of agro tourism in an Italian settlement. Using a New Institutional Economics framework, our results indicate that the collectivist cultural traits were moderated by a private institution that was created by local entrepreneurs, and this institution supported cooperative behavior between them, fostered the emergence of impersonal transactions, resulting in positive network externalities and efficiency improvements. This work contributes with the literature by showing how private institutions can foster cooperation among agents even when inserted in an institutional environment with weak protection of property rights.