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Research Project Report

Research Project Report 상세보기
A Study on Industrial Structural Characteristics of Ocean Fisheries and Industrial Policies
Report No. 2013-14 Research Manager Hong Hyun Pyo
File


A Study on Industrial Structural Characteristics of Ocean Fisheries and Industrial Policies


1. Purpose
○ The study analyzed industrial structural distinctiveness of ocean fisheries of Korea theoretically and quantitatively and aimed to induce policy implications which could maximize industrial performance. 
-For that purpose, it firstly reviewed a possibility of introducing industrial structural approach as well as evaluating quantitative uniqueness. Then, it produced desirable industrial structures and industrial conducts which could maximize industrial performance of the Korean ocean fisheries.
-Based on such theoretical and empirical analyses, the study developed propositions to the industry. This would ultimately contribute to sharpening global competitiveness of the Korean ocean fisheries. 

2. Methodologies and Feature
1) Methodologies
○ This study targeted ‘ocean fisheries’ out of ocean industry under the definition of the Ocean Industry Development Act and conducts theoretical and empirical analyses.
-Under the Ocean Industry Development Act, ‘business related to ocean fisheries’ refers to multiple businesses, not limited to one type of industry, which makes theoretical and empirical analyses difficult. For this reasons, this study was focused on relatively homogeneous ‘ocean fisheries.’
○ For an industrial analysis on ocean fisheries of Korea, the study used the Structure-Conduct-Performance (SCP) paradigm out of industrial structural approaches.
-It tried to connect the above analyses with the Bio-Economic Model which showed relation between fisheries resources, catch and fishing effort.
-It suggested the Market Access Comparative Static Analysis by combing ‘unrestricted fishing type bio economic model’ and ‘profit maximization function of ocean fishery businesses’.
?In this case, ocean fishery businesses within fishing grounds compete each other to increase catch efforts quantity and the models was made according to the Conjectural Variation Model.
○ For more effective research, the study analyzed theoretical grounds and industrial condition with help of domestic experts and ocean fishery companies. 
- For literature analyses, it examined preceding studies, relevant reports and policy materials.
-Researchers of the study visited domestic ocean fishery companies to collect statistics, investigate actual condition and listen to those in the industry.
-It held advisory meetings and planned joint research with domestic experts on basic theories for industrial structural approaches and their application to ocean fisheries.
○ Based on such theoretical and empirical analyses, the study produced policy implications for ocean fisheries.
2) Feature
○ Proceeding studies, including one in 1996 (Min Kyung-hwi et tal) conducted industrial structural and empirical analyses on domestic manufacturing industry and generated industrial policy implications. However, few studies have been done on ocean fisheries with industrial structural approach.
○ The study of Hong Hyn-pyo (2002) used characteristics and variables of fisheries industry from industrial structural viewpoint and showed their theoretical meanings and results of empirical analyses. In his 2002 study, the researcher reviewed a possible introduction of the SCP paradigm to analyses on fisheries industry. In particular, he suggested including the bio-economy model into requirements for profit maximization. This is because fisheries resources are a vehicle of fisheries industry.
○ However, this study targeted ocean fisheries which showed relatively larger scale and industrialization than other fisheries industry. For the first time, the study conducted theoretical analyses on oligopolistic activities of ocean fishery companies in major overseas fishing grounds under the bio-economy model.
○ In order to identify industrial structural behavioral distinctiveness of ocean fisheries, it applied the Cournot Model to fishing competition between imperfectly competitive companies and explained the model.
○ For modeling of fishing activities of ocean fisheries companies, the study divided fishing operation waters for overseas ocean fisheries into waters for ‘unrestricted fishing’ and those ‘with limited total fishing effort.’ Based on the result, it conducted empirical analyses.

3. Results
1) Summary
○ The study used materials of 69 ocean fisheries companies and 323 ocean fishery ships to calculate industrial performance indexes, activity indexes and structural indexes.
 For an analysis on industrial performance determinants, the study used some modified added value ratios (under agreement) based on added value ratios as performance indexes. For performance index per each ship, the study deducted fishing costs from production costs, divided them by production costs and used the result as indexes for margin rates. Based on the above empirical model, the following results were produced;
-The Minimum Efficient Scale (MES) of Korean ocean fisheries stood at about 4,500 tons. By catch, this amounted to 9,000 tons. This implied that Korean ocean fisheries should become larger and more advanced. At the same time, active policies need to be prepared for relatively small sized ocean fisheries companies. However, most ships for ocean fisheries in Korea are aged and facility appropriation fund are not secured, which means that they do not have enough resources for ship modernization or ship replacement.
-Ships with smaller tons tend to increase operation days for stable performance. Accordingly, smaller ships show relatively higher fuel cost rates. 
-Although most ocean fisheries ships are aged, money for ship replacement or ship modernization is minimized. On balance, private sector seems totally unprepared for ship modernization or ship replacement.
-In Korean ocean fisheries, Korean ship crew show high productivity. If Korean crew are replaced with foreign crew, their faltering productivity can become another dilemma. Therefore, expansion of Korean ship crew should continue while foreign crew needs to be secured and trained at the same time.
-For ocean fisheries companies, business entity-based unit (composed of diversified multiple business units) is more effective their ship-based unit. The major reason seems that diversified businesses of a business entity help it to secure economic feasibility. Therefore, follow-up studies need to be done on economic feasibility according to business diversification of a business unit.
-As charges in securing fishing ground have continued to increase, discovery of new fishing grounds or maintaining them became an important issue. ‘Charges for fishing’ can be seen a type of investment, rather than an expense, to buttress economic activities of ocean fisheries companies. In current environment with intensifying resource protectionism of coastal nations, a huge amount of money is spent to secure fishing grounds and they became the key determinant of industrial performance.
○ According to the above empirical analyses, Korean ocean fisheries showed meaningful relation between industrial structure, industrial conducts and industrial performance. 
○ Nevertheless, due to time series limits of materials and restrictions on fishing grounds, this study have the following limitations, which needs to be complemented subsequently.
-Since this empirical analysis is a cross sectional analysis per year, it has limitations in producing a SCP paradigm effective throughout the history of Korean ocean fisheries. Moreover, the study is based on the premise that overseas fishing operation grounds match up with ecological habitat of certain fish types. If the premise is different from current situation, there is not enough explanation. Therefore, complementary studies should follow after enough materials are accumulated.
-As for final product market, additional theoretical studies are required on differentiation of local markets and imperfectly competitive market.
2) Policy contribution
○ So far, various policy supports for ocean fisheries are implemented regardless of industrial uniqueness of each company. However, this study helps to prepare policies which build industrial conducts and structure based on industrial performance.
-For example, in order to achieve policy goals of improving various industrial performance indexes, practical measures, such as industrial structure improvement policies and, industrial conduct (company strategy) inducement policies can be carried out at stages.
○ The study can be used as foundation materials for enactment of laws and regulations on ocean fishery industrial development.
3) Expected benefits
○ The study helps to enhance competitiveness of ‘business related to ocean fisheries’ through management efficiency, optimized fleet size, diversified business composition and restructuring of ineffective business units.
○ Competition between fishing nations have reduced opportunities to enter overseas fishing grounds while increased related costs. Advanced nations and regional fisheries organizations are strengthening illegal fishing activities and international environment for fishing activities are changing. Against this background, the study prepares measures to develop new fishing grounds and constantly secure overseas fishing grounds by improving fishing practices, fishing equipment and methods and other industrial foundation.

Research Project Report 상세보기
A Study on Industrial Structural Characteristics of Ocean Fisheries and Industrial Policies
Report No. 2013-14 Research Manager Hong Hyun Pyo
File


A Study on Industrial Structural Characteristics of Ocean Fisheries and Industrial Policies


1. Purpose
○ The study analyzed industrial structural distinctiveness of ocean fisheries of Korea theoretically and quantitatively and aimed to induce policy implications which could maximize industrial performance. 
-For that purpose, it firstly reviewed a possibility of introducing industrial structural approach as well as evaluating quantitative uniqueness. Then, it produced desirable industrial structures and industrial conducts which could maximize industrial performance of the Korean ocean fisheries.
-Based on such theoretical and empirical analyses, the study developed propositions to the industry. This would ultimately contribute to sharpening global competitiveness of the Korean ocean fisheries. 

2. Methodologies and Feature
1) Methodologies
○ This study targeted ‘ocean fisheries’ out of ocean industry under the definition of the Ocean Industry Development Act and conducts theoretical and empirical analyses.
-Under the Ocean Industry Development Act, ‘business related to ocean fisheries’ refers to multiple businesses, not limited to one type of industry, which makes theoretical and empirical analyses difficult. For this reasons, this study was focused on relatively homogeneous ‘ocean fisheries.’
○ For an industrial analysis on ocean fisheries of Korea, the study used the Structure-Conduct-Performance (SCP) paradigm out of industrial structural approaches.
-It tried to connect the above analyses with the Bio-Economic Model which showed relation between fisheries resources, catch and fishing effort.
-It suggested the Market Access Comparative Static Analysis by combing ‘unrestricted fishing type bio economic model’ and ‘profit maximization function of ocean fishery businesses’.
?In this case, ocean fishery businesses within fishing grounds compete each other to increase catch efforts quantity and the models was made according to the Conjectural Variation Model.
○ For more effective research, the study analyzed theoretical grounds and industrial condition with help of domestic experts and ocean fishery companies. 
- For literature analyses, it examined preceding studies, relevant reports and policy materials.
-Researchers of the study visited domestic ocean fishery companies to collect statistics, investigate actual condition and listen to those in the industry.
-It held advisory meetings and planned joint research with domestic experts on basic theories for industrial structural approaches and their application to ocean fisheries.
○ Based on such theoretical and empirical analyses, the study produced policy implications for ocean fisheries.
2) Feature
○ Proceeding studies, including one in 1996 (Min Kyung-hwi et tal) conducted industrial structural and empirical analyses on domestic manufacturing industry and generated industrial policy implications. However, few studies have been done on ocean fisheries with industrial structural approach.
○ The study of Hong Hyn-pyo (2002) used characteristics and variables of fisheries industry from industrial structural viewpoint and showed their theoretical meanings and results of empirical analyses. In his 2002 study, the researcher reviewed a possible introduction of the SCP paradigm to analyses on fisheries industry. In particular, he suggested including the bio-economy model into requirements for profit maximization. This is because fisheries resources are a vehicle of fisheries industry.
○ However, this study targeted ocean fisheries which showed relatively larger scale and industrialization than other fisheries industry. For the first time, the study conducted theoretical analyses on oligopolistic activities of ocean fishery companies in major overseas fishing grounds under the bio-economy model.
○ In order to identify industrial structural behavioral distinctiveness of ocean fisheries, it applied the Cournot Model to fishing competition between imperfectly competitive companies and explained the model.
○ For modeling of fishing activities of ocean fisheries companies, the study divided fishing operation waters for overseas ocean fisheries into waters for ‘unrestricted fishing’ and those ‘with limited total fishing effort.’ Based on the result, it conducted empirical analyses.

3. Results
1) Summary
○ The study used materials of 69 ocean fisheries companies and 323 ocean fishery ships to calculate industrial performance indexes, activity indexes and structural indexes.
 For an analysis on industrial performance determinants, the study used some modified added value ratios (under agreement) based on added value ratios as performance indexes. For performance index per each ship, the study deducted fishing costs from production costs, divided them by production costs and used the result as indexes for margin rates. Based on the above empirical model, the following results were produced;
-The Minimum Efficient Scale (MES) of Korean ocean fisheries stood at about 4,500 tons. By catch, this amounted to 9,000 tons. This implied that Korean ocean fisheries should become larger and more advanced. At the same time, active policies need to be prepared for relatively small sized ocean fisheries companies. However, most ships for ocean fisheries in Korea are aged and facility appropriation fund are not secured, which means that they do not have enough resources for ship modernization or ship replacement.
-Ships with smaller tons tend to increase operation days for stable performance. Accordingly, smaller ships show relatively higher fuel cost rates. 
-Although most ocean fisheries ships are aged, money for ship replacement or ship modernization is minimized. On balance, private sector seems totally unprepared for ship modernization or ship replacement.
-In Korean ocean fisheries, Korean ship crew show high productivity. If Korean crew are replaced with foreign crew, their faltering productivity can become another dilemma. Therefore, expansion of Korean ship crew should continue while foreign crew needs to be secured and trained at the same time.
-For ocean fisheries companies, business entity-based unit (composed of diversified multiple business units) is more effective their ship-based unit. The major reason seems that diversified businesses of a business entity help it to secure economic feasibility. Therefore, follow-up studies need to be done on economic feasibility according to business diversification of a business unit.
-As charges in securing fishing ground have continued to increase, discovery of new fishing grounds or maintaining them became an important issue. ‘Charges for fishing’ can be seen a type of investment, rather than an expense, to buttress economic activities of ocean fisheries companies. In current environment with intensifying resource protectionism of coastal nations, a huge amount of money is spent to secure fishing grounds and they became the key determinant of industrial performance.
○ According to the above empirical analyses, Korean ocean fisheries showed meaningful relation between industrial structure, industrial conducts and industrial performance. 
○ Nevertheless, due to time series limits of materials and restrictions on fishing grounds, this study have the following limitations, which needs to be complemented subsequently.
-Since this empirical analysis is a cross sectional analysis per year, it has limitations in producing a SCP paradigm effective throughout the history of Korean ocean fisheries. Moreover, the study is based on the premise that overseas fishing operation grounds match up with ecological habitat of certain fish types. If the premise is different from current situation, there is not enough explanation. Therefore, complementary studies should follow after enough materials are accumulated.
-As for final product market, additional theoretical studies are required on differentiation of local markets and imperfectly competitive market.
2) Policy contribution
○ So far, various policy supports for ocean fisheries are implemented regardless of industrial uniqueness of each company. However, this study helps to prepare policies which build industrial conducts and structure based on industrial performance.
-For example, in order to achieve policy goals of improving various industrial performance indexes, practical measures, such as industrial structure improvement policies and, industrial conduct (company strategy) inducement policies can be carried out at stages.
○ The study can be used as foundation materials for enactment of laws and regulations on ocean fishery industrial development.
3) Expected benefits
○ The study helps to enhance competitiveness of ‘business related to ocean fisheries’ through management efficiency, optimized fleet size, diversified business composition and restructuring of ineffective business units.
○ Competition between fishing nations have reduced opportunities to enter overseas fishing grounds while increased related costs. Advanced nations and regional fisheries organizations are strengthening illegal fishing activities and international environment for fishing activities are changing. Against this background, the study prepares measures to develop new fishing grounds and constantly secure overseas fishing grounds by improving fishing practices, fishing equipment and methods and other industrial foundation.

이전글, 다음글 읽기
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