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Article

Effect of Fisheries Subsidies Negotiations on Fish Production and Interest Rate

1
Commonwealth Secretariat, Marlborough House, Pall Mall, St. James’s, London SW1Y 5HX, UK
2
School of Accounting and Finance, Faculty of Business and Economics, The University of the South Pacific, Laucala Campus, Suva 40302, Fiji
3
Department of Global Business and Economics, Changwon National University, Changwon 51140, Korea
4
Centre for WTO Studies, Siddhartha Enclave, Ashram Chowk, Ring Road, New Delhi 110014, India
*
Author to whom correspondence should be addressed.
J. Risk Financial Manag. 2020, 13(12), 297; https://doi.org/10.3390/jrfm13120297
Received: 24 October 2020 / Revised: 16 November 2020 / Accepted: 17 November 2020 / Published: 29 November 2020
(This article belongs to the Special Issue Financial Development and Economic Growth)
We analyze the effect of fisheries subsidy negotiations on financial markets and aggregate demand in developed and developing countries. We examine the plausible scenarios that are likely to emerge in the event of elimination or reduction of subsidies, and the subsequent effect on the financial markets and the fish production. We use the Keynesian macroeconomic static framework, which is based on an extended well-known investment-savings (IS) and liquidity preference–money supply (LM) model for analysis. Our analysis shows that the impact of a reduction in fisheries subsidies would reduce the exploitation of fish and marine resources in developing countries, thus leading to a general increase in fish prices and quantity stabilizing at lower levels. We also find that this effect would transfer to financial markets, leading to a decline in interest rates for fish exporting developing countries, but interest rates tend to stabilize at higher levels for fish importing developed countries. View Full-Text
Keywords: fisheries subsidies; financial markets; interest rates; international trade fisheries subsidies; financial markets; interest rates; international trade
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MDPI and ACS Style

Kumar, R.; Kumar, R.R.; Stauvermann, P.J.; Arora, P. Effect of Fisheries Subsidies Negotiations on Fish Production and Interest Rate. J. Risk Financial Manag. 2020, 13, 297. https://doi.org/10.3390/jrfm13120297

AMA Style

Kumar R, Kumar RR, Stauvermann PJ, Arora P. Effect of Fisheries Subsidies Negotiations on Fish Production and Interest Rate. Journal of Risk and Financial Management. 2020; 13(12):297. https://doi.org/10.3390/jrfm13120297

Chicago/Turabian Style

Kumar, Radika, Ronald R. Kumar, Peter J. Stauvermann, and Pallavi Arora. 2020. "Effect of Fisheries Subsidies Negotiations on Fish Production and Interest Rate" Journal of Risk and Financial Management 13, no. 12: 297. https://doi.org/10.3390/jrfm13120297

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