Economics of institutions and transaction costs: implementation of some elements of the analysis of small-scale agribusiness.

Abstract

The purpose of this paper is to demonstrate how family agribusiness reproduces in rural areas of the country (with emphasis in Southern Brazil), even in some cases, under conditions of social and economic difficulties. Thus, this paper discusses the main issues related to maintaining social and economic developments of small agro-industrial by addressing them under the theoretical framework of institutionalism (The New Institutional Economics - NEI) and Cost Economics Transaction (ECT). The research methodology included the use of a structured questionnaire with closed questions, search through the CAAF (CAAF, 2006) and semi-structured interviews with owners of families agribusinesses, applied both in Northern Rio Grande do Sul (Upper East Region of Uruguay). The findings show that the ECT and institutionalism are theoretical approaches that are consistent and provide good support in understanding the processes of reproduction and social maintenance of small-scale agro-industrial family, even in the face of production problems, market, organization, legislation.