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Act East Policy and Northeast India: The Role of Transaction Costs

  • Bhagirathi Panda
Chapter

Abstract

Although the states in Northeast India were created on ethnic lines, today the developmental imperatives require that they have to emerge as a single economic entity. The region is yet to emerge as an integrated economic entity and the success and effective continuity of the AEP depends on reducing the transaction costs by emerging as an integrated economic unit. This is contingent on, inter alia, linking up with the expansion in the livelihood and employment opportunities which depend on the emergence of a strong regional and local economic base led by networked industry and a high end services sector. This finally is dependent on reducing the present level of high transaction costs which includes issues of property rights, transport costs, law and order, governance, rent seeking and corruption.

Keywords

Transaction cost Complementarities Economic integration Northeast 

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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Bhagirathi Panda
    • 1
  1. 1.Department of EconomicsNorth Eastern Hill UniversityShillongIndia

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