PingSun Leung

Estimating economic impacts from tourism

Abstract Economists have traditionally used input-output (IO) analysis to examine the impacts of tourism on the economy of a region. This paper introduces a relatively new and alternative technique, computable general equilibrium (CGE). The two approaches are compared and then used to analyze, as an illustration, the impacts on Hawaiis economy from a reduction in visitor expenditure. The study concludes that the results of the IO model are similar in magnitude to those of the CGE model but generally higher and that sectors closely associated with tourism exhibit the largest effects. The ability to account for inter-sectoral resource flows is a major advantage of CGE models and explains differences in IO and CGE results

Productive Efficiency of the Swine Industry in Hawaii: Stochastic Frontier vs. Data Envelopment Analysis

Improving productive efficiency is an increasingly important determinant of the future of the swine industry in Hawaii. This paper examines the productive efficiency of a sample of swine producers in Hawaii by estimating a stochastic frontier production function and the constant returns to scale (CRS) and variable returns to scale (VRS) output-oriented DEA models. The technical efficiency estimates obtained from the two frontier techniques are compared. The scale properties are also examined under the two approaches. The industrys potential for increasing production through improved efficiency is also discussed.

Technical Efficiency of the Longline Fishery in Hawaii: An Application of A Stochastic Production Frontier

This paper examines the level and determinants of technical efficiency for a sample of domestic longline fishing vessels operating in Hawaii in 1993. The data on per-trip costs and revenues, fishing targets, vessel ownership, experience and education level of fishermen, vessel size, and vessel age are analyzed using a translog stochastic production frontier, including a model for vessel-specific technical inefficiencies. Output elasticities, marginal productivities of inputs, and returns to scale are also examined. The technical inefficiency effects are found to be highly significant in explaining the levels of and variation in vessel revenues. The mean technical efficiency for the sample vessels is estimated to be 84%. Vessels that target swordfish, and those varying target by season, set, or trip, tend to be less efficient than those vessels targeting tuna and those mixing targets in all trips. Owner-operated vessels seem to be more efficient than those operated by hired captains. The experience of fishermen has a strong positive influence on technical efficiency. Although insignificant, vessel size and fishermens education level have a positive influence, and vessel age has a negative influence on vessel efficiency.

Comparative economics of shrimp farming in Asia

Abstract This paper reviews the trends and economics of hatchery and grow-out phases of shrimp farming in Asia. The economics of small, medium and large-scale hatcheries are evaluated based on a recent Philippine study. Costs and returns of shrimp grow-outs in major Asian producing countries are analyzed based on a recent farm performance survey conducted by the Asian Development Bank (ADB) and Network of Aquaculture Centers in Asia–Pacific (NACA). The costs and returns of extensive, semi-intensive and intensive farming systems are compared within the producing country, and the economic efficiency of each system is compared among the major producing countries. Comparative advantage of producing and marketing of shrimp among major producing countries in Asia is also evaluated. Limitations for future development and factors affecting the sustainable growth of the shrimp industry are also discussed.

Evaluating fisheries management options in Hawaii using analytic hierarchy process (AHP)

Fisheries management is typically characterized by multiple and often conflicting objectives. The Western Pacific Regional Fishery Management Council (WPRFMC) is the authority for managing exclusive economic zone (EEZ) fisheries in Hawaii. The array of multiple objectives coupled with the heterogeneous composition of WPRFMC creates a complex decision-making environment for fishery management in Hawaii. In this paper, we applied the analytic hierarchy process (AHP) to evaluate four alternatives for limiting entry of longliners into the Hawaii pelagic fishery. We first elicited the factors deemed to be important for a sustainable pelagic fishery using a questionnaire survey, followed by another questionnaire to elicit judgments from all of the individuals involved in the decision-making process of WPRFMC. While there is considerable variation among individuals, the overall weighting of objectives and ranking of alternatives is robust in the sense of being consistent across all four bodies of the WPRFMC. There was no statistical difference in mean results among the WPRFMC bodies at the 5% level. This experience demonstrated an application of the AHP process in fishery management. The results of the present evaluation of the alternatives for limiting entry of longliners are comparable to earlier decisions. As compared to conventional decision making, this process has the advantages of timeliness, quantification, and documentation. It may also provide policy analysts with insights into potential conflicts and tradeoffs before the decision-making process unfolds.

Tourism’s Forward and Backward Linkages

This article proposes linkage analysis as a complement to the traditional tourism-impact analysis to examine tourism’s economic imprints on a destination’s economy. The starting point of tourism-impact analysis is final demand; impact analysis measures the direct and indirect impacts of tourist spending on the local economy. The starting point of linkage analysis is the tourism sector; the analysis examines the strengths of the inter-sectoral forward (FL) and backward (BL) relationships between the tourism sector and the nontourism industries. The FL measures the relative importance of the tourism sector as supplier to nontourism industries in the economy, whereas the BL measures its relative importance as demander. Directly applying conventional linkage analysis to tourism is not straightforward because tourism is not a defined industry. Thus, we develop a methodology to calculate tourism’s forward and backward linkages using national, regional, or local input-output tables and demonstrate its utility by applying it to Hawaii.

The Influence of Ethnic Diversity on Social Network Structure in a Common-Pool Resource System: Implications for Collaborative Management

Social networks have recently been identified as key features in facilitating or constraining collaborative arrangements that can enhance resource governance and adaptability in complex social-ecological systems. Nonetheless, the effect of ethnicity on social network structure in an ethnically diverse common-pool resource system is virtually unknown. We characterize the entire social network of Hawaii’s longline fishery, an ethnically diverse competitive pelagic fishery, and investigate network homophily, network structure, and cross-scale linkages. Results show that ethnicity significantly influences social network structure and is responsible for a homophily effect, which can create challenges for stakeholder collaboration across groups. Our analysis also suggests that ethnicity influences the formation of diverse network structures, and can affect the level of linkages to outside industry leaders, government or management officials, and members of the scientific community. This study provides the first empirical examination of the impact of ethnic diversity on resource user’s social networks in the common-pool resource literature, having important implications for collaborative resource management.

Technical efficiency of carp production in Nepal: An application of stochastic frontier production function approach*

Modern aquaculture is a relatively new activity among Nepalese farmers and a small contributor to the economy. Given the abundance of water resources and fish species, rising demand for fish, and its high profitability, aquaculture has potential for future expansion if it gets appropriate attention from the government. In Nepal, productivity in aquaculture is much lower compared to other countries in the region, which suggests that there is potential for increased fish production through technological progress and improvement in farm-level technical efficiency. However, no formal analysis has yet been conducted to assess the productive performance of Nepalese aquaculture and its potential for future improvement. Against this background, this paper examines the technical efficiency and its determinants for a sample of fish pond farms from the Tarai region of the country using a stochastic production frontier involving a model for technical inefficiency effects. The estimated mean technical efficiency is 77%, with intensive farms being more efficient than extensive farms. The adoption of regular fish, water, and feed management activities has a strong positive effect on technical efficiency.

Regional Economic Impacts of Reductions in Fisheries Production: A Supply-Driven Approach

Much debate and subsequent confusion have recently been generated regarding the economic importance of the longline fisheries for tuna and swordfish in Hawaii. Depending on the methodology employed, the measures of the economic importance of these fisheries to Hawaii can vary significantly. This paper attempts to provide an assessment of the alternative measures and their implications for fishery policy. In assessing the economic impact of the reduction in longline activities due to season and area closures as mandated by a recent court order, we suggest that the supply-driven approach is more appropriate. An empirical application using the supply-driven approach is used to estimate the economy-wide impacts of a 100% reduction in Hawaii-based longline activities. In addition, a set of supply-driven multipliers is derived for the other sectors of Hawaiis economy to allow comparison with the fishery sectors.

Technical efficiency of carp pond culture in peninsula Malaysia : an application of stochastic production frontier and technical inefficiency model

Carp pond culture is an important contributor to the aquaculture industry in Peninsula Malaysia. However, carp production has decreased since the advent of new aquaculture development policies, and carp pond farms are concerned with improving productivity to sustain growing fish demand while staying profitable. In this paper, stochastic production frontier analysis is conducted in conjunction with a technical inefficiency model to examine the productive performance and its determinants in carp pond culture in Peninsula Malaysia. The mean technical efficiency for sample carp farms is estimated to be 42%, indicating a great potential for increasing carp production in Peninsula Malaysia through improved efficiency. Seed ratio has a significant effect on fish production; therefore, the proper choice of species composition is important to improving productivity in carp polyculture. Because the intensive/semi-intensive system is found to be technically more efficient than the extensive system, efforts should be made to promote the intensive/semi-intensive carp culture.