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Effects of Global Fisheries on Developing Countries Possibilities for Income and Threat of Depletion

Author

Listed:
  • Eggert, Håkan

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Greaker, Mads

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract
This study deals with fisheries and trade, focusing on developing countries. Fish is globally traded, and for many developing countries, it is an important net export good. In most of these countries, fisheries are often characterized by poorly defined property rights, accompanied by overcapitalization where too many vessels and fishermen catch too few fish from too small stocks. Management is often de facto open access, where vessels with or without permission to fish land as much as they can catch due to limited monitoring and enforcement activities. Even in developed countries, many fisheries are poorly managed, and recent studies indicate that marine ecosystems are in global decline. While trade generally is beneficial for growth and welfare, the combination of pure open access and trade liberalization may both reduce welfare and stocks for a country—an outcome that can be reinforced by the common use of bad subsidies. However, trade liberalization may have an additional positive impact by promoting the development of property rights in response to increased fish exploitation. The WTO can play a role by adopting a broader classification of subsidies to help eliminate bad subsidies, such as like public support of vessel construction, fuel subsidies, or fishing rights outside developing coastal countries provided at limited or zero cost. The WTO can also ssist by distinguishing good subsidies (e.g., improving fisheries management or improving monitoring and enforcement), which are desirable targets when rich countries allocate aid resource to developing countries.

Suggested Citation

  • Eggert, Håkan & Greaker, Mads, 2009. "Effects of Global Fisheries on Developing Countries Possibilities for Income and Threat of Depletion," Working Papers in Economics 393, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0393
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    File URL: http://hdl.handle.net/2077/21492
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    References listed on IDEAS

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    Cited by:

    1. Radika Kumar & Ronald Ravinesh Kumar & Peter Josef Stauvermann & Pallavi Arora, 2020. "Effect of Fisheries Subsidies Negotiations on Fish Production and Interest Rate," JRFM, MDPI, vol. 13(12), pages 1-16, November.

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    More about this item

    Keywords

    Fisheries; marine resources; property rights; trade and environment; WTO;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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