TRANSACTION COSTS: AN EMPIRICAL ANALYSIS OF THEIR RELATIONSHIP WITH INVESTMENT AND FOREIGN DIRECT INVESTMENT
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 transact...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Fundação Getulio Vargas, Escola de Administração de Empresas de São Paulo
2011-04-01
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| Series: | RAE: Revista de Administração de Empresas |
| Subjects: | |
| Online Access: | http://rae.fgv.br/sites/rae.fgv.br/files/artigos/10.1590_S0034-75902011000200005.pdf |
| Summary: | 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 |
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| ISSN: | 0034-7590 2178-938X |