Impact of fuel subsidies on fishermen income: an Empirical study of small-scale fishermen in Kedah And Perlis

Even though fuel subsidy can give more profit to the fisheries sector, it also has drawbacks to the ecosystem that tends to lead to overcapacity. This study investigated the impact of fuel subsidies on the income of fishermen operating in Zone A and Zone B in Kedah and Perlis. Focus group discuss...

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Main Authors: Mgt Husain, Wan Hafidzatul Akmal, Ali, Jamal, Arzemi, Amizam
Format: Article
Language:English
Published: School of Economics, Finance and Banking, Universiti Utara Malaysia 2020
Subjects:
Online Access:https://repo.uum.edu.my/id/eprint/28177/1/JES%202%20%202020%2033%2047.pdf
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author Mgt Husain, Wan Hafidzatul Akmal
Ali, Jamal
Arzemi, Amizam
author_facet Mgt Husain, Wan Hafidzatul Akmal
Ali, Jamal
Arzemi, Amizam
author_sort Mgt Husain, Wan Hafidzatul Akmal
collection UUM
description Even though fuel subsidy can give more profit to the fisheries sector, it also has drawbacks to the ecosystem that tends to lead to overcapacity. This study investigated the impact of fuel subsidies on the income of fishermen operating in Zone A and Zone B in Kedah and Perlis. Focus group discussions with fisherman association committees were conducted to understand the issues related to fuel subsidy. The regression analysis method was used to examine the relationship between the fishermen’s monthly income and various explanatory variables, such as oil subsidy received by the fishermen, the incentive value of catch received, the monthly allowance, the location of fishing activity, and the socioeconomic background of fishermen. The result of the study revealed that Boat B fishermen gained more benefits from the implementation of fuel subsidized policy than Boat A fishermen because the former used larger boat sizes and better fishing gear. In addition, variables, such as fuel subsidy, operating costs, and duration of fishing hours, influenced fishermen's income. Although fuel subsidies may contribute toward over fishing, fuel subsidy is still needed by small-scale fishermen since it can reduce the cost of fishing activities and thus increase their monthly income. This research indicates that it is important to understand the contribution of fuel as the total cost of fishing activities and how fuel subsidies can reduce these costs to improve the income of fishermen in the study area
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spelling uum-281772021-02-10T07:55:49Z https://repo.uum.edu.my/id/eprint/28177/ Impact of fuel subsidies on fishermen income: an Empirical study of small-scale fishermen in Kedah And Perlis Mgt Husain, Wan Hafidzatul Akmal Ali, Jamal Arzemi, Amizam HC Economic History and Conditions Even though fuel subsidy can give more profit to the fisheries sector, it also has drawbacks to the ecosystem that tends to lead to overcapacity. This study investigated the impact of fuel subsidies on the income of fishermen operating in Zone A and Zone B in Kedah and Perlis. Focus group discussions with fisherman association committees were conducted to understand the issues related to fuel subsidy. The regression analysis method was used to examine the relationship between the fishermen’s monthly income and various explanatory variables, such as oil subsidy received by the fishermen, the incentive value of catch received, the monthly allowance, the location of fishing activity, and the socioeconomic background of fishermen. The result of the study revealed that Boat B fishermen gained more benefits from the implementation of fuel subsidized policy than Boat A fishermen because the former used larger boat sizes and better fishing gear. In addition, variables, such as fuel subsidy, operating costs, and duration of fishing hours, influenced fishermen's income. Although fuel subsidies may contribute toward over fishing, fuel subsidy is still needed by small-scale fishermen since it can reduce the cost of fishing activities and thus increase their monthly income. This research indicates that it is important to understand the contribution of fuel as the total cost of fishing activities and how fuel subsidies can reduce these costs to improve the income of fishermen in the study area School of Economics, Finance and Banking, Universiti Utara Malaysia 2020 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/28177/1/JES%202%20%202020%2033%2047.pdf Mgt Husain, Wan Hafidzatul Akmal and Ali, Jamal and Arzemi, Amizam (2020) Impact of fuel subsidies on fishermen income: an Empirical study of small-scale fishermen in Kedah And Perlis. Journal of Economics and Sustainability, 2 (1). pp. 35-47. ISSN 2637-1294 http://www.jes.uum.edu.my/index.php/archives/vol-2-issue-1-jan-2020
spellingShingle HC Economic History and Conditions
Mgt Husain, Wan Hafidzatul Akmal
Ali, Jamal
Arzemi, Amizam
Impact of fuel subsidies on fishermen income: an Empirical study of small-scale fishermen in Kedah And Perlis
title Impact of fuel subsidies on fishermen income: an Empirical study of small-scale fishermen in Kedah And Perlis
title_full Impact of fuel subsidies on fishermen income: an Empirical study of small-scale fishermen in Kedah And Perlis
title_fullStr Impact of fuel subsidies on fishermen income: an Empirical study of small-scale fishermen in Kedah And Perlis
title_full_unstemmed Impact of fuel subsidies on fishermen income: an Empirical study of small-scale fishermen in Kedah And Perlis
title_short Impact of fuel subsidies on fishermen income: an Empirical study of small-scale fishermen in Kedah And Perlis
title_sort impact of fuel subsidies on fishermen income an empirical study of small scale fishermen in kedah and perlis
topic HC Economic History and Conditions
url https://repo.uum.edu.my/id/eprint/28177/1/JES%202%20%202020%2033%2047.pdf
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AT alijamal impactoffuelsubsidiesonfishermenincomeanempiricalstudyofsmallscalefishermeninkedahandperlis
AT arzemiamizam impactoffuelsubsidiesonfishermenincomeanempiricalstudyofsmallscalefishermeninkedahandperlis