The Impact of Fish Production on Marine Trade Balance and Foreign Direct Investment: An Empirical Study of the GCC Economies

• Main Authors: Alshubiri, Faris, Elheddad, Mohamed, Doytch, Nadia
• Format: text
• Published: Archīum Ateneo 2020
• Subjects: Fish production; Marine fish trade balance; Foreign investment opportunities; Marine and economic policy; GCC countries; Agriculture; Animal Sciences; Aquaculture and Fisheries; Economics; Environmental Studies; Food Studies; Life Sciences; Social and Behavioral Sciences
• Online Access: https://archium.ateneo.edu/asog-pubs/259; https://doi.org/10.1016/j.marpol.2019.103660
• Institution: Ateneo De Manila University

This study aims to identify the impact of fish output on the marine fish trade balance; as well as foreign investment opportunities in six Gulf Cooperation Council (GCC) countries over the period of 1985–2016. We applied several panel estimation techniques; including fixed effects (FE); generalized method of moments(GMM); instrumental variable-fixed effect (IV-FE); and panel ARDL.FE model estimates show that marine fish production has a positive and significant effect on the marine trade balance; with a 1% increase in fish production leading to a more than 1%increase in the trade balance. Estimates of system GMM and IV-FE methods, which allow for the controlling of endogeneity; suggest an even larger effect. When we consider the relationship with foreign direct investment (FDI); FE; GMM and IV-FE show no significant effects. However; the ARDL model shows a statistically significant long-term relationship between fish production and both trade balance and inward foreign direct investment.