IDEAS home Printed from https://ideas.repec.org/a/eco/journ1/2017-02-84.html
   My bibliography  Save this article

The Contribution of Subsidies on the Welfare of Fishing Communities in Malaysia

Author

Listed:
  • Jamal Ali

    (School of Economics, Finance and Banking, Collage of Business, Universiti Utara Malaysia, Malaysia,)

  • Hussin Abdullah

    (School of Economics, Finance and Banking, Collage of Business, Universiti Utara Malaysia, Malaysia,)

  • Mohd Saifoul Zamzuri Noor

    (School of Economics, Finance and Banking, Collage of Business, Universiti Utara Malaysia, Malaysia,)

  • K. Kuperan Viswanathan

    (Othman Yeop Abdullah, Graduate School of Business, Universiti Utara Malaysia, Malaysia,)

  • Gazi Nurul Islam

    (Othman Yeop Abdullah, Graduate School of Business, Universiti Utara Malaysia, Malaysia.)

Abstract

Subsidies can reduce the cost of fishing operations and enhance revenues that make fishing enterprises more profitable. However, in Malaysia, overcapitalization and excessive fishing capacity leading to the overexploitation of fishery resources. The study obtained information about the type of fishing subsidies that has been given to fishing communities, benefits earned from these subsidies and views on the best possible policy directions for fisheries subsidy that will redirect funds towards promoting sustainable livelihoods and food security. Data collected for the study from three fishing districts of Peninsular Malaysia (Kedah, Perak, and Terengganu) through face to face interview. A total 246 fisher respondents were selected through a random selection process from the list of fishers with the Department of Fisheries. This study used institutional analysis and development model, which is explaining the importance of community factor characteristics (attributes of community) such as fishing communities. The results also showed that subsistence allowance is less effective for the livelihoods of fisher because it makes fisherman more dependent on subsidy. The termination of this allowance will not affect fishermen's livelihoods. However, both A and B boat participants put importance on this monthly allowance as they found it very useful during the crisis time. The results demonstrated that fuel subsidy was the most important item for the fisher as it reduced fishing operation costs. The fuel subsidy has important implication for fisheries resource sustainability. Most fisherman families depend solely on fishing for their livelihood. The government should undertake effective fisheries management to reduce fishing pressure in the sea.

Suggested Citation

  • Jamal Ali & Hussin Abdullah & Mohd Saifoul Zamzuri Noor & K. Kuperan Viswanathan & Gazi Nurul Islam, 2017. "The Contribution of Subsidies on the Welfare of Fishing Communities in Malaysia," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 641-648.
    • Handle: RePEc:eco:journ1:2017-02-84
    as

    Download full text from publisher

    File URL: http://www.econjournals.com/index.php/ijefi/article/download/4292/pdf
    Download Restriction: no
    File URL: http://www.econjournals.com/index.php/ijefi/article/view/4292/pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gjertsen, Heidi, 2005. "Can Habitat Protection Lead to Improvements in Human Well-Being? Evidence from Marine Protected Areas in the Philippines," World Development, Elsevier, vol. 33(2), pages 199-217, February.
    2. H. Scott Gordon, 1954. "The Economic Theory of a Common-Property Resource: The Fishery," Journal of Political Economy, University of Chicago Press, vol. 62(2), pages 124-124.
    3. Clark, Colin W. & Munro, Gordon R. & Sumaila, Ussif Rashid, 2005. "Subsidies, buybacks, and sustainable fisheries," Journal of Environmental Economics and Management, Elsevier, vol. 50(1), pages 47-58, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Naoto Jinji, 2011. "Fisheries Subsidies and Management in Open Economies," Discussion papers e-11-004, Graduate School of Economics Project Center, Kyoto University.
    2. Gordon Munro & U. Sumaila, 2015. "On the Contributions of Colin Clark to Fisheries Economics," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 61(1), pages 1-17, May.
    3. Steven M. Smith, 2016. "Common Property Resources and New Entrants: Uncovering the Bias and Effects of New Users," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 3(1), pages 1-36.
    4. Cheung, William W.L. & Sumaila, U. Rashid, 2008. "Trade-offs between conservation and socio-economic objectives in managing a tropical marine ecosystem," Ecological Economics, Elsevier, vol. 66(1), pages 193-210, May.
    5. Graff Zivin, Joshua & Mullins, Jamie, 2015. "Vessel buybacks in fisheries: The role of auction and financing structures," Marine Policy, Elsevier, vol. 53(C), pages 188-197.
    6. Tim M Daw & Joshua E Cinner & Timothy R McClanahan & Katrina Brown & Selina M Stead & Nicholas A J Graham & Joseph Maina, 2012. "To Fish or Not to Fish: Factors at Multiple Scales Affecting Artisanal Fishers' Readiness to Exit a Declining Fishery," PLOS ONE, Public Library of Science, vol. 7(2), pages 1-10, February.
    7. Christian Mullon & Charles Mullon, 2016. "A constraint-based framework to study rationality, competition and cooperation in fisheries," Papers 1605.08166, arXiv.org, revised Jan 2017.
    8. Diana Dijk & Eligius M. T. Hendrix & Rene Haijema & Rolf A. Groeneveld & Ekko C. Ierland, 2017. "An Adjustment Restriction on Fish Quota: Resource Rents, Overcapacity and Recovery of Fish Stock," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(2), pages 203-230, June.
    9. Brian R. Copeland & M. Scott Taylor, 2017. "Environmental and resource economics: A Canadian retrospective," Canadian Journal of Economics, Canadian Economics Association, vol. 50(5), pages 1381-1413, December.
    10. Michiyuki Yagi & Shunsuke Managi, 2011. "Catch limits, capacity utilization and cost reduction in Japanese fishery management," Agricultural Economics, International Association of Agricultural Economists, vol. 42(5), pages 577-592, September.
    11. Brian R. Copeland & M. Scott Taylor, 2017. "Environmental and resource economics: A Canadian retrospective," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 50(5), pages 1381-1413, December.
    12. Asche, Frank & Smith, Martin D., 2010. "Trade and fisheries: Key issues for the World Trade Organization," WTO Staff Working Papers ERSD-2010-03, World Trade Organization (WTO), Economic Research and Statistics Division.
    13. Kotchen, Matthew J. & Salant, Stephen W., 2011. "A free lunch in the commons," Journal of Environmental Economics and Management, Elsevier, vol. 61(3), pages 245-253, May.
    14. Holland, Daniel S. & Herrera, Guillermo E., 2012. "The impact of age structure, uncertainty, and asymmetric spatial dynamics on regulatory performance in a fishery metapopulation," Ecological Economics, Elsevier, vol. 77(C), pages 207-218.
    15. Anne-Sarah Chiambretto & Hubert Stahn, 2017. "Voluntary Management of Fisheries under an Uncertain Background Legislative Threat," Working Papers halshs-01500543, HAL.
    16. McCloskey Deirdre Nansen, 2018. "The Two Movements in Economic Thought, 1700–2000: Empty Economic Boxes Revisited," Man and the Economy, De Gruyter, vol. 5(2), pages 1-20, December.
    17. Carlson, Ernest W., 1971. "The Biological and Economic Objectives of Fishery Management," File Manuscripts, United States National Marine Fisheries Service, Economic Research Division, number 233587, January.
    18. Coxhead, Ian A. & Jayasuriya, Sisira, 2003. "Trade, Liberalization, Resource Degradation and Industrial Pollution in Developing Countries: An Integrated Analysis," Staff Papers 12691, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    19. Busch, Jonah, 2008. "Gains from configuration: The transboundary protected area as a conservation tool," Ecological Economics, Elsevier, vol. 67(3), pages 394-404, October.
    20. Rauscher, Michael, 1996. "Sustainable Development and Complex Ecosystems. An Economist's View," Thuenen-Series of Applied Economic Theory 02, University of Rostock, Institute of Economics.

    More about this item

    Keywords

    Subsidies; Fisheries Resources; Marine Resources; Malaysia;
    All these keywords.

    JEL classification:

    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
    • P35 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Public Finance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ1:2017-02-84. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.