Surveying Transaction Costs of Obtaining Facilities in Agricultural Bank (Case Study: Golestan Province)

High transaction costs for financial markets are one of the major structural features in developing countries. The objective of this study is surveying transaction costs of obtaining facility of Golestan province farmers in Agricultural Bank. Data were gathered from 270 farmers selected through simple random sampling in Golestan province in 2011. Linear and logit econometric models were used for this purpose. The results of study showed that, opportunity and direct costs of borrowing facilities are highest transaction costs of borrowing in the Agricultural Bank, and effective factors on increase transaction costs cause to reduce the probability of participation in Agricultural Bank. In order to reduce the transaction costs and promote agricultural development, expansion of bank branches in rural areas and reduce their bureaucracies system including cases that are recommended.

JEL Classification: G21, G28

Keywords:
Transaction Costs, Facilities, Agricultural Bank, Linear Model, Logit Model, Golestan Province