The Interbranch organizations in the cap reform: Institutional nature, opportunities and limits

Abstract

The objective of this study is to address the following research question: how could the Interbranch organizations (IBOs) support the implementation of the new cap regulatory approach sustaining the design and the implementation of private orderings in Agro-industry value chains? Our method is based on two steps. First we delineate a conceptual framework based on recent achievements of Transaction Cost Economics. This step is based on the illustration of a three institutional layers architecture which includes macro-, meso- and microinstitutional levels. The next step is to focus on the case study of IBOs and is dedicated to analysis of such arrangements in terms of meso- institutions. The study provides two basic results. First is pointed out that the cap reform calls for the identification of appropriate meso-institutional level. Secondly it is suggested that the efficiency of the micro-institutional level is increased by the integration of the scope of the meso-institutional level.