Non-convexity and the Sustainability of the Indonesia's Life Reef Fish Public Deposited

http://ir.library.oregonstate.edu/concern/conference_proceedings_or_journals/5m60qs76r

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  • Fishing for the life reef fish has been an important source of economy both at macro level and micro level. At Macro level, life reef fish for food (LRFF) plays a greater role in increasing export revenue since most of the fish are sold in overseas markets such Hong Kong and China. At micro level, LRFF provides secured income and employment for people in coastal areas where poverty is persistent. The capacity of the fishery resource to supply the increasing demand, however, is limited due to the nature of non-convexity of the fishery system and the backward bending supply curve dictated by its yield function. This paper explores the consequences of such constraints by imposing the non-linear dynamic model developed previously by Rosser (2000). The study was empirically tested in one the Indonesian LRFF fishery in South Sulawesi and the results show that the non-convexity as seen from the backward bending supply curve will result in unsustainable management of the fishery which lead to poverty and ecosystem catastrophic in the coastal area if no serious actions are taken.
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  • Fauzi, Akhmad. 2008. Non-convexity and the Sustainability of the Indonesia's Life Reef Fish. 10 pages. In: Proceedings of the Fourteenth Biennial Conference of the International Institute of Fisheries Economics & Trade, July 22-25, 2008, Nha Trang, Vietnam: Achieving a Sustainable Future: Managing Aquaculture, Fishing, Trade and Development. Compiled by Ann L. Shriver. International Institute of Fisheries Economics & Trade, Corvallis, Oregon, USA, 2008.
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