Does the location of salmon farms contribute to the reduction of poverty in remote coastal areas? An impact assessment using a Chilean case study

Abstract

We test if the establishment of salmon farms in remote coastal areas had a significant impact on poverty reduction in the period 1992–2002 in Los Lagos Region, Chile. We employ impact assessment techniques using as control group people residing in geographic areas where no salmon farms were established during the period studied. Poverty incidence is estimated using small-area models at the household level that combines socioeconomic surveys with census data. Our results show that poverty decreased considerably more in localities where salmon farms were installed than in localities without salmon farms. We identify the distances between localities and salmon farms where this impact was significant. Our findings contribute to the debate on the socioeconomic effects of aquaculture for capital-intensive, international market-oriented industries.