Using ICT to Reduce Transaction Costs in Agriculture through Better Communication: A Case Study from Sri Lanka

Posted: 8 Mar 2010

See all articles by Harsha de Silva

Harsha de Silva

LIRNEasia

Dimuthu Ratnadiwakara

University of Houston - C.T. Bauer College of Business, Students

Date Written: 2008

Abstract

This paper considers the specific role of information and communication technologies [ICT] in reducing transaction costs in agriculture by enabling timely and affordable communication. Segmenting transaction costs in to several components, the paper isolates the costs associated with information search as the specific costs that could be influenced through ICT. Analyzing the findings of a case study among a group of smallholder vegetable farmers in Sri Lanka the paper identifies the specific information needs of these farmers along the agriculture value chain starting with the decision on the crop to be planted and ending with the sale of produce at the wholesale market and measures the information search costs associated with this group of farmers. The paper concludes by indicating the possibility of dramatic reductions of transaction costs with the use of ICT to reduce information search costs to enable greater farmer participation in commercial agriculture as opposed to subsistence farming that continue to force so many farmers in developing countries in to poverty.

Suggested Citation

de Silva, Harsha and Ratnadiwakara, Dimuthu, Using ICT to Reduce Transaction Costs in Agriculture through Better Communication: A Case Study from Sri Lanka (2008). Available at SSRN: https://ssrn.com/abstract=1565184

Harsha De Silva (Contact Author)

LIRNEasia ( email )

12, Balcomb Place
Colombo, 00800
Sri Lanka

Dimuthu Ratnadiwakara

University of Houston - C.T. Bauer College of Business, Students ( email )

Houston, TX
United States
713-743-4937 (Phone)

Register to save articles to
your library

Register

Paper statistics

Abstract Views
724
PlumX Metrics