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Trade and Resources: Welfare effects of the Lake Victoria fisheries boom

Author

Listed:
  • Eggert, Håkan

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

  • Greaker, Mads

    (Statistics Norway)

  • Kidane, Asmerom

    (University of Dar-es-Salaam)

Abstract

In this paper we examine the welfare implications of the Tanzanian fisheries boom following from the increase in quantities and prices of the Lake Victoria Nile perch export during 1993-2008. We use the theoretical model by Brander and Taylor (1997) that we try to test empirically. We have a micro level perspective using data from a 1993 World Bank household survey and our own study from 2008, both containing data from about 520 households in the two regions Mwanza and Mara by the lake. Our results indicate that average income has increased in both rural and urban areas. For the poorest part of the population, rural areas experienced only modestly and non-significantly reductions in the fraction below basic needs, while urban areas had a substantial reduction. However, growth was modest and inequality seems to have increased during the period. Concerning human capital measured as education for the household head we found substantial improvements in educational level and a simple regression model confirmed the significant impact of education on household income. We also found that households on average are better off when situated close to the lake.

Suggested Citation

  • Eggert, Håkan & Greaker, Mads & Kidane, Asmerom, 2012. "Trade and Resources: Welfare effects of the Lake Victoria fisheries boom," Working Papers in Economics 534, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0534
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    File URL: http://hdl.handle.net/2077/29306
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    References listed on IDEAS

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    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q02 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Commodity Market
    • 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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