Proposal of fishing load capacity curve and testing validity: Evidence from top 20 countries with highest fisheries production by panel data approaches

Abstract

This study investigates the validity of the Environmental Kuznets Curve (EKC) and the proposed Fishing Load Capacity Curve (FLCC) for the top 20 fishing countries. To this end, the study applies second-generation panel data approaches (panel LM cointegration test, common correlated effect mean group, and Dumitrescu-Hurlin panel causality test) for the period between 2000 and 2018. In this way, the study contributes by proposing the FLCC hypothesis, which implies that fishing load capacity (biocapacity of fishing areas divided by the footprint on those areas) first decreases with rising per capita income and then increases above a certain level of wealth. Such an approach can provide a good environmental assessment of fisheries sustainability because it considers both supply and demand aspects of water resources. The results demonstrate that both the EKC and FLCC hypotheses are valid, that fisheries production affects the quality of fishing areas, and that container port traffic has no effect on fishing load capacity.