Are mussel seed producers responsive to economic incentives? Empirical evidence from the Benthic Resource Management Areas in Chile

ABSTRACT

We specify a model to analyze the participation and supply decisions of coastal producers performing with mussel seed uptake. We empirically specify and estimate the model for a sample of artisanal fishermen in Southern Chile, using a panel data set between 2008 and 2013. This period presents large changes in producer engagement and supplied quantities. The results suggest that temporal changes in supply are mainly explained by price, cost, and contract variables. Moreover, socioeconomic variables help to explain the differences between different producer groups. We conclude that seed uptake is dependent on supply conditions and the development of the external market and that policies aiming to promote previous activity should consider the interdependence between the markets.

KEYWORDS:

• Socioeconomic determinants
• mussel seed supply
• seed uptake
• small-scale aquaculture

Notes

Selection bias refers to the selection of individuals, groups or data for analysis such that proper randomization is not achieved.

There is extended literature on the way in which shocks are transmitted through prices to other links of the supply chain (Asche et al., 2002; Asche et al., 2007; Martens et al., 2012; Asche et al., 2014; Gordon & Hussain 2015).

The district (“comuna” in Spanish) is the smallest political-administrative unit in Chile.