Abstract
The interrelated issues of capacity utilization (CU) and technical efficiency (TE) have received global importance as they relate to the problem of overcapitalization and overfishing. Given the limited research on these issues in the context of small-scale fisheries, this paper attempts to provide empirical estimates of TE and CU with particular focus on small-scale fisheries in Oman using Data Envelopment Analysis (DEA). The output variables included aggregated catch of three fish categories namely large pelagic, demersal, and other, while the boat length, engine power and number of crews were used as input variables in the empirical analysis. The data for the year 2010 were used and 97 active fishing boats were selected for the analysis. The TE and CU estimates were generated under the assumption of constant returns to scale (CRS) and variable returns to scale (VRS). The TE estimates under both CRS and VRS assumptions indicate that about 84.5% and 79.4% of the representative boats are operating in a technically inefficient manner. In addition, the unbiased CU estimates under the same assumptions show that about 77.3 % and 82.5% of the boats are not operating at full capacity. Furthermore, the average score of unbiased CU measure suggests that the representative boats may not be using variable inputs efficiently. To gain a better understanding of harvesting operations in small-scale fisheries sector in the country, it is prescribed that the management authority should extend this study for other coastal governorates and investigate the potential causes of inefficiency to design effective management strategies.
Highlights
In the context of small-scale fisheries in developing countries, concerns related to overfishing and overcapacity have been widely recognized (Purcell and Pomeroy 2015; Pomeroy 2012; Salas et al 2007) and weak governance and poor management, amongst others, were identified as driving forces of such concerns
The mean estimates of capacity (θ1) and efficiency (θ2) parameters under both constant returns to scale (CRS) and variable returns to scale (VRS) assumptions are found to be theoretically consistent reflected by the fact that θ1 ≥ θ2 ≥ 1 (Pascoe and Tingley 2006)
The mean technical efficiency (TE) estimates under both CRS and VRS indicate that the representative boats are on average operating in a technically inefficient manner
Summary
In the context of small-scale fisheries in developing countries, concerns related to overfishing and overcapacity have been widely recognized (Purcell and Pomeroy 2015; Pomeroy 2012; Salas et al 2007) and weak governance and poor management, amongst others, were identified as driving forces of such concerns. Failure to address such concerns will have adverse socio-economic consequences as small-scale fisheries supply income and food to millions of families worldwide (FAO 2017). This is perhaps due to financial constraints and lack of necessary data for such analysis
Published Version (Free)
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have