Economic Analysis: Theory and Practice
 

Studying the high profitability phenomenon in Russian fisheries

Vol. 17, Iss. 4, APRIL 2018

Received: 18 January 2018

Received in revised form: 6 February 2018

Accepted: 5 March 2018

Available online: 27 April 2018

Subject Heading: ANALYSIS OF INCOME, PROFITS AND COSTS

JEL Classification: D24, P54, Q22

Pages: 652–670

https://doi.org/10.24891/ea.17.4.652

Kuzin V.I. Kaliningrad State Technical University, Kaliningrad, Russian Federation
vlagimirkuzin@klgtu.ru

ORCID id: not available

Kharin A.G. Kaliningrad State Technical University, Kaliningrad, Russian Federation
agkharin@yandex.ru

ORCID id: not available

Importance Over recent yeas, Russian fisheries have demonstrated extremely high financial performance. The study focuses on the mechanism of profitability of sales in the industry.
Objectives The purpose is to identify drivers of unusually high profitability of fisheries in 2014–2016 and evaluate the effects associated with the phenomenon.
Methods The study draws on the statistical analysis method. We also employ elements of comparative analysis and graphical interpretation of statistical data.
Results The analysis shows that the main driver of profitability growth is price hikes for fish and fish products due to administrative restrictions. Under the specific legal mechanism of natural resource utilization, these restrictions triggered abnormal growth of fishing rent and its unregulated appropriation by fishing enterprises.
Conclusions In 2015–2016, Russian fisheries, with the support of public authorities, managed to derive maximum benefit from the fishing rent. However, this basis of growth is rather unstable in the medium-to-long term. It puts in question the prospects for further development of Russian fisheries, especially the implementation of large-scale and costly program for fishing fleet modernization. The findings may be useful for specialists in the fishing industry and other branches of the Russian economy.

Keywords: fishery, fishing rent, return on sales, profitability factor

References:

  1. Endovitskii D.A., Lyubushin N.P., Babicheva N.E. [Resource-oriented economic analysis: Theory, methodology, practice]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2013, no. 38, pp. 2–8. URL: https://cyberleninka.ru/article/n/resursoorientirovannyy-ekonomicheskiy-analiz-teoriya-metodologiya-praktika (In Russ.)
  2. Brigham E., Erhardt M. Finansovyi menedzhment [Financial Management: Theory and Practice]. St. Petersburg, Piter Publ., 2009, 960 p.
  3. Mnatsakanyan A.G., Korneva O.V. [Improving fishing enterprises business processes]. Finansovaya analitika: problemy i resheniya = Financial Analytics: Science and Experience, 2014, no. 7, pp. 26–31. URL: https://cyberleninka.ru/article/v/sovershenstvovanie-biznes-protsessov-predpriyatiy-rybnoy-otrasli (In Russ.)
  4. Walden J.B., Kitts N. Measuring Fishery Profitability: An Index Number Approach. Marine Policy, 2014, vol. 43, pp. 321–326. URL: https://doi.org/10.1016/j.marpol.2013.07.002
  5. Marshall A. Printsipy ekonomicheskoi nauki [Principles of Economics]. Moscow, Progress Publ., 1993, 312 p.
  6. Marx K. Kapital. Kritika politicheskoi ekonomii [Das Kapital. Kritik der politischen Ökonomie]. Moscow, Eksmo Publ., 2011, vol. 3, 1200 p.
  7. Chamberlin E. Teoriya monopolisticheskoi konkurentsii: reorientatsiya teorii stoimosti [The Theory of Monopolistic Competition: A Reorientation of the Theory of Value]. Moscow, Ekonomika Publ., 1996, 349 p.
  8. Samuels Warren J. Institutsional'naya ekonomicheskaya teoriya. V kn.: Panorama ekonomicheskoi mysli kontsa XX stoletiya [Institutional Economics. In: Panorama of Economic Thought at the End of the 20th Century]. St. Petersburg, Ekonomicheskaya shkola Publ., 2002, vol. 1, 668 p.
  9. Volkogon V.A., Sergeev L.I., Kuzin V.I., Mnatsakanyan R.A. Programmno-tselevye aspekty rybokhozyaistvennoi deyatel'nosti [Program-oriented aspects of fisheries management]. Kaliningrad, KSTU Publ., 2017, 182 p.
  10. Zilanov V.K., Borisov V.M., Luka G.I. Rybnoe khozyaistvo Norvegii [Fisheries in Norway]. Moscow, VNIRO Publ., 2017, 296 p.
  11. Lam V., Sumaila R., Dyck A., Pauly D., Watson R. Construction and First Applications of a Global Cost of Fishing Database. ICES Journal of Marine Science, 2011, vol. 68, iss. 9, pp. 1996–2004. URL: https://doi.org/10.1093/icesjms/fsr121
  12. Mnatsakanyan A.G., Kharin A.G. [Investments in the fishing industry in Russia: Analysis, trends and prospects]. Rybnoe khozyaistvo = Fishery, 2017, no. 3, pp. 52–56. (In Russ.)
  13. Mnatsakanyan A.G., Koryakina A.V., Teplitskii V.A. Investitsionnye resursy rybokhozyaistvennogo kompleksa (na primere rybokhozyaistvennogo kompleksa Kaliningradskoi oblasti): monografiya [Investment resources of the fisheries complex (the Kaliningrad oblast fishery complex case): a monograph]. Kaliningrad, KSTU Publ., 2014, 98 p.
  14. Kuzin V.I. [On the content of the concept of socio-economic development]. Baltiiskii ekonomicheskii zhurnal, 2011, no. 2, pp. 123–128. (In Russ.)
  15. Meshcherov V.A. [Real and fictitious capital: A mechanism of functioning]. Vestnik Samarskogo finansovo-ekonomicheskogo instituta = Vestnik of Samara Financial-Economic Institute, 2012, no. 4, pp. 4–9. (In Russ.)

View all articles of issue

 

ISSN 2311-8725 (Online)
ISSN 2073-039X (Print)

Journal current issue

Vol. 17, Iss. 4
April 2018

Archive