IDEAS home Printed from https://ideas.repec.org/a/ucp/mresec/doi10.1086-687930.html
   My bibliography  Save this article

Profitability Effects and Fishery Subsidies: Average Treatment Effects Based on Propensity Scores

Author

Listed:
  • Nguyen Ngoc Duy
  • Ola Flaaten

Abstract

This article uses the propensity-score matching method to examine the effects of a government subsidy program on the profitability of fisheries. The effects are analyzed at the individual vessel level through representative surveys of costs and earnings. Bioeconomic theory and a vessel economics framework for open-access fisheries are the basis for the empirical discussion of a case study involving Vietnam's offshore gillnet fishery. The results demonstrate that the subsidy program has positive effects on vessel profitability, but the profits erode over the two years of the analysis. Subsidies have a positive impact on the operating cash flows of large vessels but negative effects on their intra-marginal rent, and bring benefits to vessel owners rather than crew members. This study reports on the first treatment evaluation of subsidies in a Southeast Asian fishery and discusses evidence that fish stocks may be biologically overfished.

Suggested Citation

  • Nguyen Ngoc Duy & Ola Flaaten, 2016. "Profitability Effects and Fishery Subsidies: Average Treatment Effects Based on Propensity Scores," Marine Resource Economics, University of Chicago Press, vol. 31(4), pages 373-402.
    • Handle: RePEc:ucp:mresec:doi:10.1086/687930
    DOI: 10.1086/687930
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/687930
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: http://dx.doi.org/10.1086/687930
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: https://libkey.io/10.1086/687930?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Michael Lechner, 2002. "Some practical issues in the evaluation of heterogeneous labour market programmes by matching methods," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 165(1), pages 59-82, February.
    2. A. Smith, Jeffrey & E. Todd, Petra, 2005. "Does matching overcome LaLonde's critique of nonexperimental estimators?," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 305-353.
    3. Sean Pascoe & Louisa Coglan, 2002. "The Contribution of Unmeasurable Inputs to Fisheries Production: An Analysis of Technical Efficiency of Fishing Vessels in the English Channel," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 585-597.
    4. Andrea Ichino & Fabrizia Mealli & Tommaso Nannicini, 2008. "From temporary help jobs to permanent employment: what can we learn from matching estimators and their sensitivity?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(3), pages 305-327.
    5. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 605-654.
    6. Ellen Verhofstadt & Miet Maertens, 2015. "Can Agricultural Cooperatives Reduce Poverty? Heterogeneous Impact of Cooperative Membership on Farmers' Welfare in Rwanda," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 37(1), pages 86-106.
    7. Pomeroy, Robert & Thi Nguyen, Kim Anh & Thong, Ha Xuan, 2009. "Small-scale marine fisheries policy in Vietnam," Marine Policy, Elsevier, vol. 33(2), pages 419-428, March.
    8. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    9. Copes, Parzival, 1972. "Factor Rents, Sole Ownership and the Optimum Level of Fisheries Exploitation," The Manchester School of Economic & Social Studies, University of Manchester, vol. 40(2), pages 145-163, June.
    10. Barbara Sianesi, 2004. "An Evaluation of the Swedish System of Active Labor Market Programs in the 1990s," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 133-155, February.
    11. Pham, Thi Duy Thanh & Huang, Hsiang-Wen & Chuang, Ching-Ta, 2014. "Finding a balance between economic performance and capacity efficiency for sustainable fisheries: Case of the Da Nang gillnet fishery, Vietnam," Marine Policy, Elsevier, vol. 44(C), pages 287-294.
    12. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
    13. Coglan, Louisa & Pascoe, Sean, 1999. "Separating Resource Rents From Intra-Marginal Rents In Fisheries' Economic Survey Data," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 28(2), pages 1-10, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Constanza Gonzalez Parrao & Shannon Shisler & Marta Moratti & Cem Yavuz & Arnab Acharya & John Eyers & Birte Snilstveit, 2021. "Aquaculture for improving productivity, income, nutrition and women's empowerment in low‐ and middle‐income countries: A systematic review and meta‐analysis," Campbell Systematic Reviews, John Wiley & Sons, vol. 17(4), December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wendimu, Mengistu Assefa & Henningsen, Arne & Gibbon, Peter, 2016. "Sugarcane Outgrowers in Ethiopia: “Forced” to Remain Poor?," World Development, Elsevier, vol. 83(C), pages 84-97.
    2. Dettmann, E. & Becker, C. & Schmeißer, C., 2011. "Distance functions for matching in small samples," Computational Statistics & Data Analysis, Elsevier, vol. 55(5), pages 1942-1960, May.
    3. Kodjo Adandohoin & Vigninou Gammadigbe, 2022. "The revenue efficiency consequences of the announcement of a tax transition reform: The case of WAEMU countries," African Development Review, African Development Bank, vol. 34(S1), pages 195-218, July.
    4. Tommaso Nannicini, 2007. "Simulation-based sensitivity analysis for matching estimators," Stata Journal, StataCorp LP, vol. 7(3), pages 334-350, September.
    5. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    6. Dan Pan, 2014. "The Impact of Agricultural Extension on Farmer Nutrient Management Behavior in Chinese Rice Production: A Household-Level Analysis," Sustainability, MDPI, vol. 6(10), pages 1-22, September.
    7. Paudel, G. & Krishna, V. & McDonald, A., 2018. "Why some inferior technologies succeed? Examining the diffusion and impacts of rotavator tillage in Nepal Terai," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277149, International Association of Agricultural Economists.
    8. Liane Faltermeier & Awudu Abdulai, 2009. "The impact of water conservation and intensification technologies: empirical evidence for rice farmers in Ghana," Agricultural Economics, International Association of Agricultural Economists, vol. 40(3), pages 365-379, May.
    9. Christian Volpe Martincus & Jerónimo Carballo, 2012. "Export promotion activities in developing countries: What kind of trade do they promote?," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 21(4), pages 539-578, June.
    10. Roberto Antonietti & Davide Antonioli, 2007. "Production Offshoring and the Skill Composition of Italian Manufacturing Firms: A Counterfactual Analysis," Working Papers 2007.97, Fondazione Eni Enrico Mattei.
    11. Loi, Massimo & Rodrigues, Margarida, 2012. "A note on the impact evaluation of public policies: the counterfactual analysis," MPRA Paper 42444, University Library of Munich, Germany.
    12. Feddersen, Arne & Maennig, Wolfgang, 2012. "Sectoral labour market effects of the 2006 FIFA World Cup," Labour Economics, Elsevier, vol. 19(6), pages 860-869.
    13. Wellalage, Nirosha Hewa & Locke, Stuart, 2020. "Formal credit and innovation: Is there a uniform relationship across types of innovation?," International Review of Economics & Finance, Elsevier, vol. 70(C), pages 1-15.
    14. Bagnoli, Lisa, 2019. "Does health insurance improve health for all? Heterogeneous effects on children in Ghana," World Development, Elsevier, vol. 124(C), pages 1-1.
    15. Gutirrez Romero, Roxana, 2009. "Estimating the impact of England's area-based intervention 'New Deal for Communities' on employment," Regional Science and Urban Economics, Elsevier, vol. 39(3), pages 323-331, May.
    16. Arnstein Aassve & Maria A. Davia & Maria Iacovou & Stefano Mazzuco, 2007. "Does Leaving Home Make You Poor? Evidence from 13 European Countries," European Journal of Population, Springer;European Association for Population Studies, vol. 23(3), pages 315-338, October.
    17. Schilling, Brian J. & Attavanich, Witsanu & Sullivan, Kevin P. & Marxen, Lucas J., 2014. "Measuring the effect of farmland preservation on farm profitability," MPRA Paper 100122, University Library of Munich, Germany, revised Jun 2014.
    18. Alberto Abadie & Guido W. Imbens, 2008. "On the Failure of the Bootstrap for Matching Estimators," Econometrica, Econometric Society, vol. 76(6), pages 1537-1557, November.
    19. Crinò, Rosario, 2012. "Imported inputs and skill upgrading," Labour Economics, Elsevier, vol. 19(6), pages 957-969.
    20. Habimana, Dominique & Haughton, Jonathan & Nkurunziza, Joseph & Haughton, Dominique Marie-Annick, 2021. "Measuring the impact of unconditional cash transfers on consumption and poverty in Rwanda," World Development Perspectives, Elsevier, vol. 23(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:mresec:doi:10.1086/687930. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/MRE .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.