Do Firm Support Increase Investments? Evidence from the Aquaculture and Fish Processing Sectors in Sweden

Abstract

The European Union provides firm support to the maritime sector to reach the policy objectives in the Common Fisheries Policy. This paper analyzes to what extent the investment support to aquaculture and fish processing firms in Sweden increases firm investment activity. By doing so, the paper also quantifies the amount of investments that would have been undertaken also without support (deadweight losses, DWL). The results show that the support increases investment in aquaculture with a factor of 0.65, thus with a DWL of 35%. The corresponding number for fish processing is a DWL of 77%.

Keywords

Common Fisheries Policy; deadweight loss; investment support; aquaculture; fish processing

Published in

Journal of Agricultural and Applied Economics
2022, volume: 54, number: 2, pages: 306-318

SLU Authors

• Blomquist, Johan

  • Department of Economics, Swedish University of Agricultural Sciences
    

• Waldo, Staffan

  • Department of Economics, Swedish University of Agricultural Sciences
    

Global goals (SDG)

SDG14 Life below water

UKÄ Subject classification

Economics
Fish and Aquacultural Science

Publication identifier

• DOI: https://doi.org/10.1017/aae.2022.11

Permanent link to this page (URI)

https://res.slu.se/id/publ/118321