Panel data analyses to examine effects of subsidies to fishery productions in OECD countries

Abstract

An econometric analysis, known as a panel data analysis, was conducted to understand the nature and the magnitude of the effect caused by subsidies to fishery productions. Published data on government financial transfers for OECD member countries from 1996 to 2002 were used for this purpose. The result of the panel data analysis indicated that certain financial transfers have brought small but positive influences to economic indicators on fisheries of aggregated OECD countries, while either no or negative effects were recognized in other financial transfers. Different magnitudes of influences were observed according to the types of the transfers. Also, there are cases where two types of financial transfers provide offsetting effects to a single economic indicator. Specifically, the total volume of fishery production for OECD countries is positively influenced by government direct payment programs, but negatively affected by the amount of general services provided by the governments. This study can be regarded as a useful first attempt to examine the empirical link between productions and subsidies of the fishery sectors.