Measuring fishery productivity growth in the Northeastern United States 2007–2018

Abstract

Fishing vessel productivity is an important metric in terms of economic performance, and yields information about the financial impact of policy changes on fishing fleets. In this study, a new method is proposed to measure sector-wide commercial fishery total factor productivity (TFP), and is applied using northeastern United States fishery-level data from 2007 to 2018. Results from the study are linked to changes which occurred after 2006 Magnuson–Stevens Fishery Conservation and Management Reauthorization Act (MSFCMRA). This is accomplished by employing a translog production possibility frontier to measure total outputs, inputs, and TFP using Törnqvist indices. Quality differences embodied in the capital assets are accounted for, and the TFP measurement is adjusted for fishery stock changes. Results show that for most fisheries, improvements in biomass after the MSFCMRA re-authorization led to improved TFP. However, when biomass growth estimates were separated from overall TPP growth, biomass-adjusted TFP annual growth declined about 2% per year. This highlights the importance of separating biomass growth from output growth so managers understand the impact of their policies on the commercial fishing sector separately from biomass growth.