A time-series data analysis to examine effects of subsidies to fishery productions in Japan

Abstract

A cointegration analysis is conducted to examine the effect of fishery subsidies on fisheries production using data compiled over more than 30 years in Japan. The results illustrate that one fishery production indicator (production value per fishermen) shows a positive relationship with one particular group of government financial transfer (GFT) (that is, government general service expenditures including cost for fishery managements, scientific researches, and other administrative activities). No other tested results between GFTs and fishery indicators showed a real relationship. Although further scrutiny is awaited, this study could provide an empirical basis for an argument that, under an effective fishing management system, fisheries subsidies do not necessarily cause production increases or negative impact on fishing stocks.

An Empirical Analysis of the Social and Ecological Outcomes of State Subsidies for Small-Scale Fisheries: A Case Study from Chile

“…With some notable exceptions (e.g., Yagi et al 2009), the dearth of empirical studies demonstrating the assumed relationship between subsidies and over-exploitation is a concern. Far more effort needs to be put into monitoring and evaluating the outcomes of subsidies in small-scale fisheries, taking note of both management regimes and the type of subsidies received.…”

“…A similar study conducted in Japan concluded that state subsidies did not lead to either an increase or a decrease of prices or numbers of fishers or vessels. The authors argue that, under effective management, subsidies do not necessarily cause production increases or negatively impact fishing stock (Yagi et al 2009). In addition to understanding the management regimes associated with subsidies, a more nuanced understanding of different kinds of subsidies seems also to be necessary.…”

“…The desired outcomes of this subsidization are generally twofold: to alleviate However, many analysts argue that subsidies too often lead to fleet modernization, increased catches, resource depletion, and ultimately decreased sustainability (Milazzo 1998, Pauly et al 2002, Khan et al 2006, OECD 2006, Jacquet and Pauly 2008. A recent empirical analysis of the effects of subsidies on industrial fisheries in Japan has shown that, under an appropriate management system, subsidies do not necessarily lead to unsustainable increases in production (Yagi et al 2009). Despite a pervasive assumption in the literature that negative outcomes are to be expected from subsidies in smallscale fisheries (Andrade 1997, Allison and Ellis 2001, Pauly et al 2002, a similar empirical analysis has not been conducted.…”

Fishery subsidies: the interaction between science and policy

“…The first two studies that shed light on the impact of broader fishery subsidies are those of Yagi et al (2008Yagi et al ( , 2009. Yagi et al (2008) use a panel of 23 OECD countries during 1996-2002 to evaluate the effect of three types of subsidies (direct payments, cost-reducing transfers, general services) on seven fishery outcome variables (production, value, number of vessels, total tonnage of vessels, number of fishers, value per fisher, price).…”

“…Similarly, Yagi et al (2009) use time series data in Japan during 1971-2003 to examine the relationship between four types of subsidies (direct payments, cost-reducing transfers, public port infrastructure, other general services) and six fishery outcomes (production, value, value per fisher, number of fishers, price of fish, number of vessels). Based on 24 univariate error correction models, they find that only other general services and the value per fisher have a statistically significant positive relationship.…”