Costs of Business Formalization: Measuring Transaction Costs in Brazil

Revista de Economia Institucional, Vol. 5, No. 9, 2003

20 Pages Posted: 28 Apr 2005

See all articles by Decio Zylbersztajn

Decio Zylbersztajn

University of São Paulo (USP) - Department of Administration

Abstract

In the presence of positive transaction costs, institutions and the architecture of organizations take on fundamental importance. This paper measures costs of opening firms in the Brazilian garment industry. The measure of costs to start up a new business in the garment industry in Brazil shows a large variation between regions in the same city and between different areas of the country. Nine different procedures were found along with a time span of 64 days and an average cost of 11,3% of the GDP per capita. Also 39% of the firms declared that they operated informally for some time.

Keywords: Entry costs, transaction costs measurement, firm behavior

JEL Classification: D23, L11, L20, L69

Suggested Citation

Zylbersztajn, Decio, Costs of Business Formalization: Measuring Transaction Costs in Brazil. Revista de Economia Institucional, Vol. 5, No. 9, 2003, Available at SSRN: https://ssrn.com/abstract=698281

Decio Zylbersztajn (Contact Author)

University of São Paulo (USP) - Department of Administration ( email )

Av. Prof. Luciano Gualberto
908 - Predio 1 Sala C14
Sao Paulo 05508-900
Brazil
55-11-3032-5966 (Phone)
55-11-3032-5966 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
239
Abstract Views
1,840
rank
156,160
PlumX Metrics