A presentation to the Western Economic Association International conference in July 2010.

1. Ocean Fish Populations
Contribution to the World
Economy
Andrew J. Dyck & Rashid Sumaila
July 2010

2. Ocean Fish Populaitons Contribution to the World Economy
May 2009
Background
 Fisheries worldwide are an important
primary industry.
 ‘landed-value’ of world fisheries estimated at
$US 85 billion/yr (Sumaila, 2007).
 Strong links with other sectors.
 Boat building, management services,
manufacturing.

3. Ocean Fish Populaitons Contribution to the World Economy
May 2009
Objective
 Determine the full economic impact of
fisheries
 Account for links between fisheries and the
rest of the economy by considering indirect
and induced effects

4. Ocean Fish Populaitons Contribution to the World Economy
May 2009
Methods
 Input-Output Approach
 Country-by-country input-output tables
 Sum direct, indirect and induced impacts
of the fisheries sector for each coastal
nation.

5. Ocean Fish Populaitons Contribution to the World Economy
May 2009
Methods
 Data is sourced from the Global Trade
Analysis Project (GTAP) version 7.
 Trade flows database with 57 sectors and
113 regions
 Input-output tables mapped to 223 geo-
political entities

6. Ocean Fish Populaitons Contribution to the World Economy
May 2009

7. Ocean Fish Populaitons Contribution to the World Economy
May 2009
Methods: Economic Multipliers
 Economic multipliers calculated
 Economic output multiplier ( )
 Income multiplier ( )
 Type I multiplier: Includes direct and indirect effects
 Type II multiplier: Includes Type I and induced effects
[ ] 1−
−AI
[ ] 1−
−AI
Q
y

8. Ocean Fish Populaitons Contribution to the World Economy
May 2009
Preliminary Multiplier Results
Type I Type II Type I Type II
Europe 2.44 5.16 Europe 0.37 0.81
Oceania 2.68 4.99 South America 0.34 0.67
South America 2.09 4.18 Oceania 0.34 0.67
Africa 2.09 3.83 Africa 0.30 0.56
North America 1.98 3.56 North America 0.26 0.49
Asia 1.81 3.36 Asia 0.27 0.47
IncomeOutput

9. Ocean Fish Populaitons Contribution to the World Economy
May 2009
Total Economic Impact
 Treat ‘landed-value’ as the sum of final demands
for fisheries output.
 Apply the multipliers to ‘landed-value’ and sum
across regions.
 Output:
 Income:
[ ]∑=
−
−
N
i
ii LVAI
1
1
[ ] i
N
i
i
i
i
LVAI
Q
y
∑=
−
−
1
1

10. Ocean Fish Populaitons Contribution to the World Economy
May 2009
Preliminary Output Effects
2003 World Fisheris Economic Output Impact (USD Billions)
Africa Asia Europe
North
America Oceania
South
America World
Direct Impact 2 50 11 11 5 5 84
Indirect Impact 3 54 16 10 8 5 96
Induced Impact 4 113 29 32 13 10 202
Total Output Impact 9 217 56 53 26 20 382

11. Ocean Fish Populaitons Contribution to the World Economy
May 2009
Preliminary Income Effects
2003 World Fisheries Impact on Household Incomes (USD Billions)
Africa Asia Europe
North
America Oceania
South
America Total
Direct and Indirect Effects 0.68 17.81 4.06 3.92 1.84 1.67 29.97
Induced Effect 0.64 16.79 4.73 6.81 1.94 1.70 32.61
Total Income Effect 1.32 34.60 8.79 10.73 3.78 3.37 62.58

12. Ocean Fish Populaitons Contribution to the World Economy
May 2009
Conclusion
 ‘Landed-value’ for the year 2000
estimated at $US 85 Billion
 Considering indirect and induced effects
total contribution of the fisheries sector to
the world economy is likely to be more
than four times landed-value.

13. Ocean Fish Populaitons Contribution to the World Economy
May 2009
Thank You!
a.dyck@fisheries.ubc.ca