Determinants of Improving the Welfare of Fishermen's Households in the Coastal Areas of West Sumatera

Abstract

This study aims to model the welfare of fishermen's households in the coastal area of West Sumatra which is determined by the socio-cultural environment, catches and added value of 373 fishing households with fishing gear by using Partial Least Squares Structural Equation Modeling (PLS-SEM) approach. The contribution of this research lies in the concept of the socio-cultural environment in improving the welfare of fishermen's households through the catch and added value that has been ignored by previous researchers. The results of the study found that the fisherman household welfare model can be achieved through strengthening added value. This study suggests to the government to increase the added value of fishery products through the added value obtained from the difference between the selling price and the cost of materials or other supplies from fishing activities, fish farming, fish handling, fish processing, and distribution in a production process. Furthermore, this study suggests to further researchers to involve the study of the physical environment such as natural conditions as a determinant of the welfare of fishermen's households.