Suggested Bibliographic Reference: Challenging New Frontiers in the Global Seafood Sector: Proceedings of the Eighteenth Biennial Conference of the International Institute of Fisheries Economics and Trade, July 11-15, 2016. Compiled by Stefani J. Evers and Ann L. Shriver. International Institute of Fisheries Economics and Trade (IIFET), Corvallis, 2016.
Proceedings of the Eighteenth Biennial Conference of the International Institute of Fisheries Economics and Trade, held July 11-15, 2016 at Aberdeen Exhibition and Conference Center (AECC), Aberdeen, Scotland, UK.
Based on financial risk analysis and portfolio theory, this paper aims to estimate the underlying risk of the European fish quota distribution among European member States along the time. Firstly, we have assigned a fishing portfolio to each member state (FP(jt)) and its related value based financial portfolio (FPV(ijt)), where each FP(j) contains the potential captures of the species for each country (tonnes) and FPV(ijt) represents the total value of the quotas for each species (i), country (j) and year (t) (€) (that is, price multiplied by quantity). Secondly, after discussing the pros and cons of the alternative measures of risk, we have computed a measure for the risk (r(jt)) of (FPV(j)) based on the semivariance. Lastly, different parametric and non-parametric test have been used in order to check whether there are significant differences on risk among the different countries and years. Preliminary results state that risk exists associated with the EU country members, and it changes between the countries, -member states could be classified into three categories: high, medium, and low risk countries.