Philippine E-Journals

Analysis of Transaction Costs of Rules and Regulations in the Agricultural Distribution Sector

Raymund B. Habaradas

 

Abstract:

In general, rules and regulations enforced by the National Food Authority. the Sugar Regulatory Administration, and the Philippine Coconut Authority do not constitute a burden for traders. Respondents largely agreed that the rules and regulations themselves "neither promote nor discourage competition' but set the standards for a level playing field. The problem lies in the occasional failure in the enforcement of these rules and regulations, which could result in opportunity costs for the legitimate traders. Overall, the regulatory agencies have largely been successful in fulfilling their enabling functions, but need to either strengthen their ability to perform their economic regulatory and constraining functions, or to review certain policies that seem to make life more difficult for the various players in the industry.