Skal råvaren i land?
AbstractProcessing ashore of raw materials from the fisheries tend intuitively to recommend itself because more creation of value added in this manner should take place in Greenland. However, we observe the opposite tendency: production is shifted aboard on factory trawlers and catches are shipped directly to export markets or may be so after transshipping in e.g. Nuuk. It is shown that this actual development indeed is the prediction of location economics. In the case of unemployment it may be optimal to secure raw materials for processing on plants ashore, an aim that may be achieved via subsidies. The optimality of such policy is discussed using concepts from cost benefit analysis, and it is demonstrated how the shadow price of labor has a crucial role. Shifting to the macro level capacity restrictions on plants and on the labor market are pointed out. The effect of taking raw material ashore is illustrated with a macro production function, which is assumed to have a positive marginal product until the capacity limit is hit. This, however, may take place after the noninflationary augmenting level of employment has been reached. Finally the possibility of alternative and better policies than the one relying on subsidies is touched upon.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Copenhagen Business School, Department of Economics in its series Working Papers with number 01-2004.
Length: 17 pages
Date of creation: 28 Aug 2006
Date of revision:
Contact details of provider:
Postal: Department of Economics, Copenhagen Business School, Solbjerg Plads 3 C, 5. sal, DK-2000 Frederiksberg, Denmark
Phone: 38 15 25 75
Fax: 38 15 26 65
Web page: http://www.cbs.dk/departments/econ/
More information through EDIRC
Greenland; export market; transshipping.;
Find related papers by JEL classification:
- H00 - Public Economics - - General - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-09-03 (All new papers)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statistics
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lars Nondal).
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.