Transaction costs: an empirical analysis of their relationship with investment and foreign direct investment

• Autor(a) principal: Wink Junior, Marcos Vinício
• Data de Publicação: 2011
• Outros Autores: Sheng, Hsia Hua, Eid Junior, William
• Tipo de documento: Artigo
• Idioma: por
• Título da fonte: Revista de Administração de Empresas
• Texto Completo: https://periodicos.fgv.br/rae/article/view/30968
• topic: Transaction costs; foreign direct investment; investment rate; BRICs; business environment; Costos de transacción; inversión extranjera directa; tasa de inversión; BRICs; entorno empresarial; Custos de transação; investimento direto estrangeiro; taxa de investimento; BRICs; ambiente de negócios

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 transaction 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.