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

  • Eggert, Håkan


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

  • Greaker, Mads


    (Statistics Norway)

  • Kidane, Asmerom


    (University of Dar-es-Salaam)

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.

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Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 534.

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Length: 30 pages
Date of creation: 04 Jun 2012
Date of revision:
Handle: RePEc:hhs:gunwpe:0534
Contact details of provider: 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
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  1. Chichilnisky, Graciela, 1994. "North-South Trade and the Global Environment," American Economic Review, American Economic Association, vol. 84(4), pages 851-74, September.
  2. James A. Brander & M. Scott Taylor, 1997. "International Trade and Open-Access Renewable Resources: The Small Open Economy Case," Canadian Journal of Economics, Canadian Economics Association, vol. 30(3), pages 526-52, August.
  3. Eggert, Hakan & Lokina, Razack B., 2008. "Regulatory Compliance in Lake Victoria Fisheries," Discussion Papers dp-08-14-efd, Resources For the Future.
  4. Sarris, Alexander H. & Tinios, Platon, 1995. "Consumption and poverty in Tanzania in 1976 and 1991: A comparison using survey data," World Development, Elsevier, vol. 23(8), pages 1401-1419, August.
  5. H. Scott Gordon, 1954. "The Economic Theory of a Common-Property Resource: The Fishery," Journal of Political Economy, University of Chicago Press, vol. 62, pages 124.
  6. Carolyn Fischer, 2010. "Does Trade Help or Hinder the Conservation of Natural Resources?," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(1), pages 103-121, Winter.
  7. Hentschel, Jesko, et al, 2000. "Combining Census and Survey Data to Trace the Spatial Dimensions of Poverty: A Case Study of Ecuador," World Bank Economic Review, World Bank Group, vol. 14(1), pages 147-65, January.
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