The influence of fiscal regulations on investment in marine fisheries: A French case study (original) (raw)
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Characterising investments in EU fisheries and defining their desirability
Fisheries Research, 2020
In most economic sectors, increases in capital (i.e., investments) are often considered virtuous, indicating confidence in the future and expected growth. In fisheries, however, investments are often harmful, as they may lead to increases in fleet capacity, which is not desirable considering the fully exploited or overexploited status of most fish stocks (natural capital), and the dissipation of the resource rent (overcapitalisation). In the EU, the number of fishing vessels have been decreasing for many years, but the fishing capacity is often claimed to have increased. In other words, there are less vessels, but the remaining ones have a higher fishing capacity. In this study, we analyse the evolution of the EU fishing industry's investments for the period 2008-2016, and whether these investments have been beneficial. Results show that despite the overall decrease in the number of vessels and their average value, investments in some fleets have increased. Moreover, investment decisions (i.e., whether to invest or disinvest) have been more accurate in recent years, leading to a better economic performance. However, results vary by the scale of the fishing activity (small-scale and large scale fleets) and sea basin (Northeast Atlantic Ocean and Mediterranean Sea).
Investment Behaviour and Capacity Adjustment in Fisheries: A Survey of the Literature
2011
This article provides a survey of the economic literature on investment behaviour and capacity adJustment in fisheries. An overview of the existing theoretical and the empirical work is provided, and areas that require more work are pointed out. The survey shows that while a large body of theoretical work has been developed on the issue of capital adjustment in fisheries, relatively less attention has been granted to the theory of investment, where this becomes a separate decision to the decision about capital levels; i.e., where capital is quasi-malleable. In addition, empirical studies have been fairly limited, and more work is still needed to analyse and fUrther investigate these issues in practical situations. There is particularly a need for more empirical studies of investment behaviour and drivers of investment behaviour at the firm level based on adequate economic data.
Macroeconomic Factors Influencing the Fisheries Sector Investment
The International Journal of Business Review (The Jobs Review)
This research is intended to analyze how macroeconomic factors influence the level of fisheries investment in Bandung city. Economic factors analyzed in this study include inflation, interest rates, and Gross Domestic Regional Product (GDRP) in Bandung city in the period 2010-2017. The method used throughout this research is the Literature Survey method by using multiple linear regression analysis methods. The results of multiple linear regression tests through the F-test and T-test to prove to be no significant positive relationship between inflation and the level of fisheries investment in Bandung city. The results of the multiple regression test also showed an insignificant negative relationship between the interest rate and the level of investment in the fisheries sector in Bandung city. GDRP has a significant positive relationship with the level of fisheries investment in Bandung city. R Square Test (R2) shows a value of 0.913 which means that 91.3% of the proportion of investm...
Investment and factor remuneration in small-scale fisheries
Investment behaviour is a complex process which plays a major role in fisheries dynamics because it determines the size of the fishing fleet. The purpose of this paper is to examine the consequences of the main characteristics of fishing activity on investment. The theoretical dynamic model of a fishery shows us the "bangbang" pallern of investment. Furthermore, fishing activity has a high intrinsic variability. Thus, the system in which income is shared between the crew and the ship owner is also considered as a way of sharing risks and so reducing the variability ofinvestment return. Finally, the type of investment financing (subsidies, loans) can strongly stimulate fisheries dynamics but can also have some undesirable effects. [NOT CONTROLLED OCR] L'investissement est un processus complexe qui joue un rôle majeur dans la dynamique des pêcheries, puisqu'il détermine la dimension des flottilles de pêche. L'objet de cet article est d'étudier les conséquence...
2009
Fisheries are an important economic sector in the EU subject to an important restructuring in the most recent years. The Financial Instrument for Fisheries Guidance (FIFG) has been the tool deployed by the European authorities to increase the competitiveness and to modernize this industry. As far as Spain is concerned, it has been verified that it is the European country receiving more funds in the recent years. The aim of this paper is to examine the financial situation of the Spanish fisheries firms, determining their indebtedness, solvency, and profitability. We also analyse if those firms included in the Fisheries sector show differences statistically significant. Along the same lines, one of the aims of the study is to carry out an analysis of the financial needs of these firms, considering the extent to which the European funds received along the latest years may have helped Fisheries the industry in Spain.
Aquatic Living Resources, 2004
This paper addresses the question of the relative importance of economic and regulatory (administrative) factors on the profitability of various components of a fishing fleet. The argument is that, while the official purpose of most regulatory measures is resource conservation, these measures may significantly influence the relative levels of incomes generated by various components of the fleet. When a large part of fisheries management is under the control of fishermen themselves, this illustrates how the endogenous generation of rules by groups of users may affect both economic efficiency and equity. The analysis relies on a field survey of a small-scale inshore fishing fleet of the Northwest part of Brittany (France),which provided data for simulations concerning the impact of various factors on the profitability of boats. According to the results of these simulations, two regulations, concerning the cost of access to some resources and the control of fishing effort, play a significant role in the difference of profitability observed according to boat size. At a time when the ageing of the fleet opens the question its renewal, this might influence durably the dynamics of the fishery.
ICES Journal of Marine Science, 2011
A profitable fishery attracts additional effort (vessels enter), eventually leading to overcapacity and less profit. Similarly, fishing vessels exit depending on their economic viability (or reduced expectations of future benefits) or encouraged by schemes such as decommissioning grants and/or when there is consolidation of fishing effort within a tradable rights-based quota system (e.g. individual transferable quotas). The strategic decision-making behaviour of fishers in entering or exiting the English North Sea beam trawl fishery is analysed using a discrete choice model by integrating data on vessel characteristics with available cost data, decommissioning grant information, and other factors that potentially influence anticipated benefits or future risks. It is then possible to predict whether operators choose to enter, stay, exit, or decommission. Important factors affecting investment include vessel age and size, future revenues, operating costs (e.g. fuel), stock status of the main target species, and the impact of management measures (e.g. total allowable catches) and total fleet size (a proxy for congestion). Based on the results, the predicted marginal effects of each factor are presented and the impact of each is discussed in the context of policies developed to align fleet capacity with fishing opportunities.