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Do Firm Support Increase Investments? Evidence from the Aquaculture and Fish Processing Sectors in Sweden

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  • Blomquist, Johan
  • Waldo, Staffan

Abstract

The European Union provides firm support to the maritime sector to reach the policy objectives in the Common Fisheries Policy. This paper analyzes to what extent the investment support to aquaculture and fish processing firms in Sweden increases firm investment activity. By doing so, the paper also quantifies the amount of investments that would have been undertaken also without support (deadweight losses, DWL). The results show that the support increases investment in aquaculture with a factor of 0.65, thus with a DWL of 35%. The corresponding number for fish processing is a DWL of 77%.

Suggested Citation

  • Blomquist, Johan & Waldo, Staffan, 2022. "Do Firm Support Increase Investments? Evidence from the Aquaculture and Fish Processing Sectors in Sweden," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 54(2), pages 306-318, May.
    • Handle: RePEc:cup:jagaec:v:54:y:2022:i:2:p:306-318_6
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    1. Jacek Kulawik & Michał Soliwoda & Agnieszka Kurdyś-Kujawska & Justyna Herda-Kopańska & Cezary Klimkowski, 2023. "Cost of Energy Consumption and Return of Excise Tax on Motor Fuels vs. the Durability of Operations and Financial Sustainability in Polish Agriculture," Energies, MDPI, vol. 17(1), pages 1-22, December.

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