The relationship between subsistence production in agriculture and transaction costs:Aan empirical case study for Turkey

In this study, the relationship between subsistence farming and transaction costs in Turkish agricultural sector is analyzed. In the first part, the theoretical base of the dissertation -the concept of transaction costs- is introduced and institutional economics? approach to transactions costs is explained. The definitions regarding the concept, its theoretical fundamentals and the role and significance of transactions costs in economic activity are clarified in this part.In the second part, descriptive statistics regarding Turkish agricultural sector are illustrated to better explain the structure of the sector and relevant problems. The relationship between subsistence farming and transaction costs are presented in this part as well.In the last section, an empirical test of the relationship between subsistence farming in Turkish agriculture and transactions costs is carried out. It is found that transaction costs do affect the production activity of agricultural producers and may lead them to subsistence farming.