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

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Author Info

  • 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.

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File URL: http://hdl.handle.net/2077/21492
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Bibliographic Info

Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 393.

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Length: 26 pages
Date of creation: 30 Nov 2009
Date of revision:
Handle: RePEc:hhs:gunwpe:0393

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Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Keywords: Fisheries; marine resources; property rights; trade and environment; WTO;

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  1. Karp, Larry & Sacheti, Sandeep & Zhao, Jinhua, 2001. "Common Ground between Free-Traders and Environmentalists," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(3), pages 617-47, August.
  2. Eggert, Håkan & Lokina, Razack B, 2005. "Regulatory Compliance in Lake Victoria Fisheries," Working Papers in Economics 175, University of Gothenburg, Department of Economics.
  3. Thomas W. Hertel & L. Alan Winters, 2006. "Poverty and the WTO : Impacts of the Doha Development Agenda," World Bank Publications, The World Bank, number 7411, October.
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  10. William R. Cline, 2004. "Trade Policy and Global Poverty," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 379.
  11. U. Sumaila & Ahmed Khan & Andrew Dyck & Reg Watson & Gordon Munro & Peter Tydemers & Daniel Pauly, 2010. "A bottom-up re-estimation of global fisheries subsidies," Journal of Bioeconomics, Springer, vol. 12(3), pages 201-225, October.
  12. Bulte, E.H. & Barbier, E., 2005. "Trade and renewable resources in a second best world: An overview," Open Access publications from Tilburg University urn:nbn:nl:ui:12-169687, Tilburg University.
  13. Holland, Dan & Gudmundsson, Eyjolfur & Gates, John, 1999. "Do fishing vessel buyback programs work: A survey of the evidence," Marine Policy, Elsevier, vol. 23(1), pages 47-69, January.
  14. Roland Ismer & Karsten Neuhoff, 2007. "Border tax adjustment: a feasible way to support stringent emission trading," European Journal of Law and Economics, Springer, vol. 24(2), pages 137-164, October.
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