IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v135y2020ics0305750x20301741.html
   My bibliography  Save this article

Integration of a local fish market in Namibia with the global seafood trade: Implications for fish traders and sustainability

Author

Listed:
  • Bronnmann, Julia
  • Smith, Martin D.
  • Abbott, James
  • Hay, Clinton J.
  • Næsje, Tor F.

Abstract

Within the last decades, globalization has changed the international seafood trade, allowing low-income countries to access markets in high-income countries and vice versa. Nevertheless, the effects of globalization are controversial and in particular the impacts on small-scale fishers and local fish traders are unclear. This paper examines the economic effects of globalization on a local fish market in Katima Mulilo, Namibia along the Zambezi River and near the border with Zambia. Using market data from January 2008 to December 2016, we test two hypotheses. First, we test if the local market is integrated with global markets. Second, we test whether local prices are increasing and associated with positive terms of trade. Using time series methods and hedonic models, results show that the Katima market is linked to the world market, and local fish traders receive higher prices over time as predicted by an increasingly globalized seafood trade.

Suggested Citation

  • Bronnmann, Julia & Smith, Martin D. & Abbott, James & Hay, Clinton J. & Næsje, Tor F., 2020. "Integration of a local fish market in Namibia with the global seafood trade: Implications for fish traders and sustainability," World Development, Elsevier, vol. 135(C).
    • Handle: RePEc:eee:wdevel:v:135:y:2020:i:c:s0305750x20301741
    DOI: 10.1016/j.worlddev.2020.105048
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X20301741
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.worlddev.2020.105048?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Asche, Frank & Bellemare, Marc F. & Roheim, Cathy & Smith, Martin D. & Tveteras, Sigbjørn, 2015. "Fair Enough? Food Security and the International Trade of Seafood," World Development, Elsevier, vol. 67(C), pages 151-160.
    2. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    3. Brander, James A. & Scott Taylor, M., 1998. "Open access renewable resources: Trade and trade policy in a two-country model," Journal of International Economics, Elsevier, vol. 44(2), pages 181-209, April.
    4. Chichilnisky, Graciela, 1994. "North-South Trade and the Global Environment," American Economic Review, American Economic Association, vol. 84(4), pages 851-874, September.
    5. Kenneth E. McConnell & Ivar E. Strand, 2000. "Hedonic Prices for Fish: Tuna Prices in Hawaii," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 133-144.
    6. Christopher D. Golden & Edward H. Allison & William W. L. Cheung & Madan M. Dey & Benjamin S. Halpern & Douglas J. McCauley & Matthew Smith & Bapu Vaitla & Dirk Zeller & Samuel S. Myers, 2016. "Nutrition: Fall in fish catch threatens human health," Nature, Nature, vol. 534(7607), pages 317-320, June.
    7. Frank Asche & Helge Bremnes & Cathy R. Wessells, 1999. "Product Aggregation, Market Integration, and Relationships between Prices: An Application to World Salmon Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(3), pages 568-581.
    8. Béné, Christophe & Lawton, Rebecca & Allison, Edward H., 2010. ""Trade Matters in the Fight Against Poverty": Narratives, Perceptions, and (Lack of) Evidence in the Case of Fish Trade in Africa," World Development, Elsevier, vol. 38(7), pages 933-954, July.
    9. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    10. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    11. Robert Jensen, 2007. "The Digital Provide: Information (Technology), Market Performance, and Welfare in the South Indian Fisheries Sector," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(3), pages 879-924.
    12. Dadi Kristofersson & Kyrre Rickertsen, 2007. "Hedonic Price Models for Dynamic Markets," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(3), pages 387-412, June.
    13. Julia Bronnmann & Frank Asche, 2016. "The Value of Product Attributes, Brands and Private Labels: An Analysis of Frozen Seafood in Germany," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(1), pages 231-244, February.
    14. Bennett, Abigail & Basurto, Xavier, 2018. "Local Institutional Responses to Global Market Pressures: The Sea Cucumber Trade in Yucatán, Mexico," World Development, Elsevier, vol. 102(C), pages 57-70.
    15. Kaczynski, Vlad M. & Fluharty, David L., 2002. "European policies in West Africa: who benefits from fisheries agreements?," Marine Policy, Elsevier, vol. 26(2), pages 75-93, March.
    16. Tobias Erhardt, 2018. "Does International Trade Cause Overfishing?," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 5(4), pages 695-711.
    17. Julia Bronnmann & Isaac Ankamah-Yeboah & Max Nielsen, 2016. "Market Integration between Farmed and Wild Fish: Evidence from the Whitefish Market in Germany," Marine Resource Economics, University of Chicago Press, vol. 31(4), pages 421-432.
    18. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    19. Isaac Ankamah-Yeboah & Lisa Ståhl & Max Nielsen, 2017. "Market Integration of Cold and Warmwater Shrimp in Europe," Marine Resource Economics, University of Chicago Press, vol. 32(4), pages 371-390.
    20. Juselius, Katarina, 2006. "The Cointegrated VAR Model: Methodology and Applications," OUP Catalogue, Oxford University Press, number 9780199285679.
    21. Tran, Nhuong & Bailey, Conner & Wilson, Norbert & Phillips, Michael, 2013. "Governance of Global Value Chains in Response to Food Safety and Certification Standards: The Case of Shrimp from Vietnam," World Development, Elsevier, vol. 45(C), pages 325-336.
    22. Liese, Christopher & Smith, Martin D. & Kramer, Randall A., 2007. "Open access in a spatially delineated artisanal fishery: the case of Minahasa, Indonesia," Environment and Development Economics, Cambridge University Press, vol. 12(1), pages 123-143, February.
    23. Richard Cudney-Bueno & Xavier Basurto, 2009. "Lack of Cross-Scale Linkages Reduces Robustness of Community-Based Fisheries Management," PLOS ONE, Public Library of Science, vol. 4(7), pages 1-8, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kira Lancker & Julia Bronnmann, 2022. "Substitution Preferences for Fish in Senegal," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(4), pages 1015-1045, August.
    2. Yang, Yao & Karali, Berna, 2022. "How far is too far for volatility transmission?," Journal of Commodity Markets, Elsevier, vol. 26(C).

    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. Kira Lancker & Julia Bronnmann, 2022. "Substitution Preferences for Fish in Senegal," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(4), pages 1015-1045, August.
    2. Asche, Frank & Bronnmann, Julia & Cojocaru, Andreea L., 2021. "The value of responsibly farmed fish: A hedonic price study of ASC-certified whitefish," Ecological Economics, Elsevier, vol. 188(C).
    3. Bronnmann, Julia & Asche, Frank, 2017. "Sustainable Seafood From Aquaculture and Wild Fisheries: Insights From a Discrete Choice Experiment in Germany," Ecological Economics, Elsevier, vol. 142(C), pages 113-119.
    4. Asche, Frank & Larsen, Thomas A. & Smith, Martin D. & Sogn-Grundvåg, Geir & Young, James A., 2015. "Pricing of eco-labels with retailer heterogeneity," Food Policy, Elsevier, vol. 53(C), pages 82-93.
    5. Lancker, Kira & Bronmann, Julia, 2020. "Quantifying consumers’ love for marine biodiversity," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304214, Agricultural and Applied Economics Association.
    6. Anderson, James L. & Asche, Frank & Garlock, Taryn, 2018. "Globalization and commoditization: The transformation of the seafood market," Journal of Commodity Markets, Elsevier, vol. 12(C), pages 2-8.
    7. Wolff, François-Charles & Asche, Frank, 2022. "Pricing heterogeneity and transaction mode: Evidence from the French fish market," Journal of Economic Behavior & Organization, Elsevier, vol. 203(C), pages 67-79.
    8. Bittmann, Thomas & Bronnmann, Julia & Gordon, Daniel V., 2020. "Product differentiation and dynamics of cost pass-through in the German fish market: An error-correction-distance measure approach," Journal of Commodity Markets, Elsevier, vol. 19(C).
    9. Asche, Frank & Smith, Martin D., 2018. "Viewpoint: Induced Innovation in Fisheries and Aquaculture," Food Policy, Elsevier, vol. 76(C), pages 1-7.
    10. Martínez-Garmendia, Josué, 2010. "Application of hedonic price modeling to consumer packaged goods using store scanner data," Journal of Business Research, Elsevier, vol. 63(7), pages 690-696, July.
    11. Elsler, Laura G. & Drohan, Sarah E. & Schlüter, Maja & Watson, James R. & Levin, Simon A., 2019. "Local, Global, Multi-Level: Market Structure and Multi-Species Fishery Dynamics," Ecological Economics, Elsevier, vol. 156(C), pages 185-195.
    12. Xu, Xun & Loke, Matthew K. & Leung, PingSun, 2015. "Is There a Price Premium for Local Food? The Case of the Fresh Lettuce Market in Hawaii," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 44(1), pages 1-14, April.
    13. Béné, Christophe & Arthur, Robert & Norbury, Hannah & Allison, Edward H. & Beveridge, Malcolm & Bush, Simon & Campling, Liam & Leschen, Will & Little, David & Squires, Dale & Thilsted, Shakuntala H. &, 2016. "Contribution of Fisheries and Aquaculture to Food Security and Poverty Reduction: Assessing the Current Evidence," World Development, Elsevier, vol. 79(C), pages 177-196.
    14. Santos, João & Domingos, Tiago & Sousa, Tânia & St. Aubyn, Miguel, 2016. "Does a small cost share reflect a negligible role for energy in economic production? Testing for aggregate production functions including capital, labor, and useful exergy through a cointegration-base," MPRA Paper 70850, University Library of Munich, Germany.
    15. Pablo de la Vega & Guido Zack & Jimena Calvo & Emiliano Libman, 2024. "Inflation Determinants in Argentina (2004-2022)," Papers 2405.20822, arXiv.org.
    16. Smed, Sinne & Hansen, Lars Garn, 2018. "Consumer Valuation of Health Attributes in Food," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 43(2), May.
    17. Emmanouil Mavrakis & Christos Alexakis, 2018. "Statistical Arbitrage Strategies under Different Market Conditions: The Case of the Greek Banking Sector," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 17(2), pages 159-185, August.
    18. Beckmann, Joscha & Czudaj, Robert, 2013. "Is there a homogeneous causality pattern between oil prices and currencies of oil importers and exporters?," Energy Economics, Elsevier, vol. 40(C), pages 665-678.
    19. Kühl, Michael, 2007. "Cointegration in the foreign exchange market and market efficiency since the introduction of the Euro: Evidence based on bivariate cointegration analyses," University of Göttingen Working Papers in Economics 68, University of Goettingen, Department of Economics.
    20. Grau, Aaron Stephan Alexander & Hockmann, Heinrich, 2017. "Estimating oligopsony power on two vertically integrated markets," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261277, European Association of Agricultural Economists.

    More about this item

    Keywords

    Small-scale fisheries; Fish trade; Globalization; Market integration; Size-based pricing; Telecoupling;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery

    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:eee:wdevel:v:135:y:2020:i:c:s0305750x20301741. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    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.