Appearing of transaction costs

16.07.2014

Appearing of transaction costs

We live in a modern society with a lot of various interactions surrounding all human activity – between people, different institutions and governments and so on. All of them pay some financial, temporal and psychological resources for each interaction which causes transaction costs. This phenomenon affected on economic activity of all subjects like a seller, consumer, taxpayer or official state agency. They can’t avoid the costs of processes associated with information search, finding a better choice, making the decision, organizing control and many others. So, this type of cost includes any necessary resource costs which are not directly aimed at the economic production, but ensure the successful implementation of this process.

In Uzbekistan government has made great efforts for better business climate through improving the quality of public services and reducing transaction costs. In this regard it is very interesting how does transaction cost appear? Learn more and join our discussion on Transformation Blog.