Academic Journals Database
Disseminating quality controlled scientific knowledge

TRANSACTION COSTS: AN EMPIRICAL ANALYSIS OF THEIR RELATIONSHIP WITH INVESTMENT AND FOREIGN DIRECT INVESTMENT

ADD TO MY LIST
 
Author(s): Marcos Vinício Wink Junior | Hsia Hua Sheng | William Eid Junior

Journal: RAE : Revista de Administração de Empresas
ISSN 0034-7590

Volume: 51;
Issue: 2;
Start page: 175;
Date: 2011;
VIEW PDF   PDF DOWNLOAD PDF   Download PDF Original page

Keywords: Transaction costs | foreign direct investment | investment rate | BRICs | business environment

ABSTRACT
As stated by the New Institutional Economics theory, transaction costs play a relevant role in economics and, according to the extent of such costs, agents make investment decisions. Actually,transaction costs may represent a disincentive to entrepreneurship.This work aims to verify whether transaction costs are related to investment rate and foreign direct investment rate (FDI) in different business environments. The results suggest that foreign investors do not have precise information about other countries as domestic investors do; as it is observed, only the relation between ransaction costs and investment rate is significant. Furthermore, there is evidence that the business environments of BRIC countries are less developed when compared to business environments of other countries in the study
Why do you need a reservation system?      Affiliate Program