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Community, Market and State in Development pp 224–244Cite as

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The Transformation of Hayami’s Village

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Abstract

One of the most important areas of inquiries in development economics is the choice of the most appropriate economic system that promotes economic development. In reality, an economic system is a combination of various interactions of three important organizations, that is, the community, market, and state. A community is defined as a small group of people characterized by intensive social interactions that tend to minimize information asymmetry between transacting parties, thereby lowering transaction costs of economic activities (Aoki and Hayami, 2001). A market is an organization that coordinates the activities of profit-maximizing firms and utility-maximizing individuals under the guidance of prices, while a state specializes in the supply of public goods by means of legitimate coercive power (Hayami and Godo, 2005).

The authors benefited greatly from the comments given by Elisabeth Sadoulet, Cristina C. David and Keijiro Otsuka. Vivencio Marciano, Ester Marciano, and Jan Irish Villegas provided excellent research assistance. The usual caveat applies.

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Authors
  1. Jonna P. Estudillo
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  2. Yasuyuki Sawada
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  3. Kei Kajisa
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  4. Nobuhiko Fuwa
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  5. Masao Kikuchi
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Keijiro Otsuka Kaliappa Kalirajan

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© 2010 Jonna P. Estudillo, Yasuyuki Sawada, Kei Kajisa, Nobuhiko Fuwa, and Masao Kikuchi

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Estudillo, J.P., Sawada, Y., Kajisa, K., Fuwa, N., Kikuchi, M. (2010). The Transformation of Hayami’s Village. In: Otsuka, K., Kalirajan, K. (eds) Community, Market and State in Development. Palgrave Macmillan, London. https://doi.org/10.1057/9780230295018_14

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