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Effect of Fisheries Subsidies Negotiations on Fish Production and Interest Rate

Author

Listed:
  • Radika Kumar

    (Commonwealth Secretariat, Marlborough House, Pall Mall, St. James’s, London SW1Y 5HX, UK)

  • Ronald Ravinesh Kumar

    (School of Accounting and Finance, Faculty of Business and Economics, The University of the South Pacific, Laucala Campus, Suva 40302, Fiji)

  • Peter Josef Stauvermann

    (Department of Global Business and Economics, Changwon National University, Changwon 51140, Korea)

  • Pallavi Arora

    (Centre for WTO Studies, Siddhartha Enclave, Ashram Chowk, Ring Road, New Delhi 110014, India)

Abstract

We analyze the effect of fisheries subsidy negotiations on financial markets and aggregate demand in developed and developing countries. We examine the plausible scenarios that are likely to emerge in the event of elimination or reduction of subsidies, and the subsequent effect on the financial markets and the fish production. We use the Keynesian macroeconomic static framework, which is based on an extended well-known investment-savings (IS) and liquidity preference–money supply (LM) model for analysis. Our analysis shows that the impact of a reduction in fisheries subsidies would reduce the exploitation of fish and marine resources in developing countries, thus leading to a general increase in fish prices and quantity stabilizing at lower levels. We also find that this effect would transfer to financial markets, leading to a decline in interest rates for fish exporting developing countries, but interest rates tend to stabilize at higher levels for fish importing developed countries.

Suggested Citation

  • Radika Kumar & Ronald Ravinesh Kumar & Peter Josef Stauvermann & Pallavi Arora, 2020. "Effect of Fisheries Subsidies Negotiations on Fish Production and Interest Rate," JRFM, MDPI, vol. 13(12), pages 1-16, November.
    • Handle: RePEc:gam:jjrfmx:v:13:y:2020:i:12:p:297-:d:453203
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    References listed on IDEAS

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    Cited by:

    1. Vasilii Erokhin & Gao Tianming & Anna Ivolga, 2021. "Cross-Country Potentials and Advantages in Trade in Fish and Seafood Products in the RCEP Member States," Sustainability, MDPI, vol. 13(7), pages 1-40, March.
    2. Md Ali Emam & Markus Leibrecht & Tinggui Chen, 2022. "The Impact of a “National Green Export Review” on Competitiveness: Empirical Evidence for Ecuador’s Fish Exports," Agriculture, MDPI, vol. 13(1), pages 1-14, December.
    3. Alberto Roca Florido & Emilio Padilla Rosa, 2024. "Analysing the impacts of a reform on harmful fishery subsidies in Spain using a social accounting matrix," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 13(1), pages 1-29, December.
    4. Md Ali Emam & Markus Leibrecht & Tinggui Chen, 2021. "Fish Exports and the Growth of the Agricultural Sector: The Case of South and Southeast Asian Countries," Sustainability, MDPI, vol. 13(20), pages 1-14, October.

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