Open AccessComparative Review of the Magnitude of Transaction Costs in Construction Procurement Projects between Developed and Developing Countries
Author(s) -
Mohammed Lawal Yahaya,
Irwan Ibrahim,
Mohammed Sani
Publication year - 2020
Publication title -
journal of applied science and environmental management
Language(s) - English
Resource type - Journals
eISSN - 2659-1499
pISSN - 2659-1502
DOI - 10.4314/jasem.v24i3.21
Subject(s) - bidding , procurement , transaction cost , business , public sector , czech , developing country , database transaction , economics , public economics , finance , economic growth , marketing , economy , linguistics , philosophy , computer science , programming language
Contracting business in public sector within various counties has a transaction cost to incur. This paper reviews transaction costs magnitude of developed and developing countries using standard sampling and procedure by analyzing data from four (4) developed countries; United States of America, United Kingdom, Newzealand, and Czech Republic and two (2) developing countries in Africa; Ghana and Nigeria. According to thefindings Newzealand have the highest TCs magnitude among all countries compared of about 16.5% averagely and with Czech Republic with 0.13% minimum that are incurred by stakeholders when bidding public sector construction projects. This is an important comparison and strengthens the assumption that there is a significant link between transaction costs incurred in bidding and public sector procurement, and that reducing such costs must be important for the contracting firms of various countries.
Keywords: Construction, Comparison, Magnitude, Procurement, Transaction Cost.