The Relationship of Transaction Costs and Rent Seeking in Capture Fisheries

Thomas  Nugroho,; Mulyono  N/A,; Didin  S. Damanhuri,; Ernani  Lubis,

The Relationship of Transaction Costs and Rent Seeking in Capture Fisheries

Thomas Nugroho | Mulyono N/A | Didin S Damanhuri | Ernani Lubis

Abstract:

The capture fisheries sector in Indonesia is expected to have a major contribution to national income. The contribution of capture fisheries to state revenue was U$ 29.44 million compared to the acquisition value of fish production reached U$ 9.67 billion in 2018. Indonesia as rich country of fish in the world suffers low income of capture fisheries whose value is only 0.25% of total national income of nature resources and economic leakage of an average U$ 552.16 billion over last twelve years. The low state revenue and economic leakage in capture fisheries sector suspected is as result of rents seeking behaviour. For predicting rents seeking behaviour, this research applicated transaction costs economy approach. The study aims to reveal relationship between transaction, transaction costs and rents seeking in capture fisheries. The research used SEM (structural equation model) constructed from measured variables (observed) and latent variables (unobserved). Respondents came from 49 government agents (63%), 5 politicians (6%), and 24 people (31%) collected via electronic mail from September to October 2021. The results of this study show that transaction costs have an impact on rents seeking in capture fisheries sector. Of all the estimated variables, there is a significant relationship at the significance level of 0.05 and 0.000 (p≤0.05).

References:

Acar, S. (2017). The curse of natural resources. In the curse of natural resources: a development analysis in a comparative context. palgrave macmillan. https://doi.org/10.1057/978-1-137-58723-7
Anderson, L. G., & Seijo, J. C. (2010). Bioeconomics of fisheries management. A John Wiley & Sons, Ltd., Publication.
Bergfjord, O. J., & Brandt, U. S. (2010). Regulation, risk, and rent seeking behaviour. Journal of risk and governance, 1(3), 1–15.
Byrne, B. M. (2010). Structural equation modeling with AMOS: Basic concepts, applications, and programming. In structural equation modeling with AMOS. Routledge taylor & Francis group.https://doi.org/10.4324/9780203805534-23
Chiles, T. H., & McMackin, J. F. (1996). Integrating variable risk preferences, trust, and transaction cost economics. The academy of management review, 21(1), 73. https://doi.org/10.2307/258630
Coggan, A., Whitten, S. M., & Bennett, J. (2010). Influences of transaction costs in environmental policy. Ecological Economics, 69(9), 1777–1784. https://doi.org/10.1016/j.ecolecon.2010.04.015
Damanhuri, D. S. (2010). Ekonomi politik dan Pembangunan: teori, kritik, dan Solusi bagi indonesia dan negara Sedang berkembang (Y. Hana (ed.); Cetakan Pe). PT Penerbit IPB Press.
FAO. (2018). The state of world fisheries and Aquaculture 2018 - meeting the sustainable development goals. In the food and agriculture organization of the united nations.
Haryono, S., & Wardoyo, P. (2015). Structural Equation modeling untuk penelitianManajemen menggunakan amos 18. Intermedia Personalia Utama.https://doi.org/10.4135/9781412983907.n1909
Hillman, A. L. (2009). Public finance and Public policy: responsibilities and limitations of government: second edition. In Cambridge University Press (Vol. 53, Issue 9).
Jr, J. F. H., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate data analysis. Cengage.https://doi.org/10.1002/9781119409137.
Kementerian Kelautan dan Perikanan. (2019). Laporan tahunan tahun 2018.
Nota Keuangan dan UU No 19 tahun 2001 Tentang anggaran pendapatan dan Belanja negara tahun anggaran 2002, 60 (2001).
Kementerian Keuangan Republik Indonesia. (2017). Laporan keuangan Pemerintah pusat tahun 2016: Vol. Mei.
Magrath, W. (1989). The challenge of the commons: the al location of nonexclusive resources. World Bank: Environment Department Working Paper, 14(14).
McCann, L., Colby, B., Easter, K. W., Kasterine, A., & Kuperan, K. V. (2005). Transaction cost measurement forevaluating environmental policies. Ecological Economics, 52(4), 527–542.https://doi.org/10.1016/j. 2004.08.002
Ministry of Finance of Republic of Indonesia. (2021). Laporan keuangan Pemerintah pusat tahun 2021 (Vol. 2021).
Ostrom, E. (1994). Rules, games &common-pool resources. In The University of Michigan Press.
Peraturan Pemerintah RI No 11 Tahun 2023 tentang Penangkapan Ikan Terukur, (2023).
Satria, D. (2015). An analysis of Transaction costs and governance structure of artisan tuna fisheries in east java, indonesia (issue july). The University of Adelaide Australia.
Scarpello, F. (2020). Susi versus the rest: The political economy of the fisheriesIndustry in indonesia during jokowi’s first term. Asian Journal of Political Science, 28(2), 122–141. https://doi.org/10.1080/02185377.2020.1774908
Todorova, T. (2015). The transaction-cost Roots of market failure. RePEc Working Paper, 1–21.
Torvik, R. (2009). Why do someresource-abundant countries succeed while others do not? Oxford Review of Economic Policy, 25(2),241–256.https://doi.org/10.1093/oxrep/grp015
Williamson, O. E. (1981). The economics Of organization : the transaction cost approach author ( s ): Oliver E . Williamson Source : The American Journal of Sociology , Vol . 87 , No.3 ( Nov ., 1981 ), pp . 548-577 . The University of Chicago Press Sta-ble . Chicago Journals, 87(3), 548–577. https://doi.org/10.1086/227496
Williamson, O. E. (1985). The economic Institutions of capitalism: firms, Market, relational contracting. https://doi.org/10.2307/258544
Yeager, T. J. (1999). Institutions, transitionEconomies, and economic development. Westview Press.
Yustika, A. E. (2013). Ekonomi kelembagaan: Paradigma, teori, dan kebijakan. Penerbit erlangga.