966
Serial number: 06/2014
Author(s): N.Huseynov
Language: Azerbaijani
Date: 2014
Abstract: This paper studies the impact of transaction costs on economic development. The importance of institutions for economic development makes the study of transaction costs important. However, there is no single methodology on how to calculate transaction costs in the theory of Institutional Economics.
The estimations, made through the only method suggested by D. North proves that transaction costs are unique to each economy. This uniqueness, reflecting a difference in the configuration of existing institutions, requires a new approach to calculation of GDP. Taking into consideration the above-mentioned, we analyze the impact of transaction costs on economic development and formulate some conclusions.
Key words: Transaction costs, public transaction costs, market transaction costs
JEL classification: D23
