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Economic Shocks in the Fisheries Sector and Maritime Piracy

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  • Ludwig, Markus
  • Flückiger, Matthias

Abstract

For a panel of 109 coastal countries we show that negative economic shocks in the fisheries sector are associated with an increase in maritime piracy. Our identification strategy uses the variation in the phytoplankton abundance off the individual countries' coasts, measured by satellite data, as a source of such shocks. We find that plankton abundance is positively related to fish catches but negatively associated with the incidence of piracy, onset and the absolute number of pirate attacks. Our instrumental variable estimates indicate that a one percent increase in fish catches reduces the risk of piracy occurring by one percentage point.

Suggested Citation

  • Ludwig, Markus & Flückiger, Matthias, 2014. "Economic Shocks in the Fisheries Sector and Maritime Piracy," MPRA Paper 56959, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:56959
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    1. Christopher Hansman & Jonas Hjort & Gianmarco León-Ciliotta & Matthieu Teachout, 2020. "Vertical Integration, Supplier Behavior, and Quality Upgrading among Exporters," Journal of Political Economy, University of Chicago Press, vol. 128(9), pages 3570-3625.
    2. Jablonski, Ryan S. & Oliver, Steven & Hastings, Justin V., 2017. "The Tortuga disease: the perverse effects of illicit foreign capital," LSE Research Online Documents on Economics 67105, London School of Economics and Political Science, LSE Library.
    3. Stefano CLÒ & Massimo FLORIO & Valentina MORRETTA & Davide VURCHIO, 2019. "Earth Observation in a Cost-Benefit Analysis Perspective: Cosmo SkyMed Satellites of the Italian Space Agency," Departmental Working Papers 2019-06, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.

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    More about this item

    Keywords

    Maritime Piracy; Fisheries Sector; Instrumental Variable Regression;
    All these keywords.

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery

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