New Institutional Economics and Agrocredit Markets in Agrarian Economies: A Theoretical Perspective
In this paper we outline the relevance of the New Institutional Economics
(NIE) approach in analysing the current behaviour of suppliers of agrocredit in
remote areas of developing economies. The paper covers the definition of NIE and its relevancy in modern economics, basic features of NIE, transaction cost
economics (TCE) and modelling of transaction costs, application of transaction cost economics in agriculture sector, and review of empirical research using TCE theory. The application of NIE theory in advancing understanding of the
development path of agrocredit market and other related markets has proved very relevant particularly in less developed areas of the developing world.
Key words: New Institutional Economics, Transaction Cost Economics, Agrocredit SuGood day managers,