Perspectives on Rent Generation and Rent Appropriation in Fisheries
The article debates the origin of rent in natural-resource based industries (NRBIs) such as fisheries, and how the rent generated can be appropriated. The Norwegian fish harvesting industry is used to illustrate the arguments. It is argued that the industry-specific institutional framework of the...
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University of Tromsø - The Arctic University of Norway, Faculty of Law
2023
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ftjarlp:oai:nordicopenaccess.no:article/3721 2024-01-07T09:40:18+01:00 Perspectives on Rent Generation and Rent Appropriation in Fisheries Bertheussen, Bernt Arne 2023-01-06 application/pdf text/html application/epub+zip text/xml https://arcticreview.no/index.php/arctic/article/view/3721 https://doi.org/10.23865/arctic.v14.3721 eng eng University of Tromsø - The Arctic University of Norway, Faculty of Law https://arcticreview.no/index.php/arctic/article/view/3721/8218 https://arcticreview.no/index.php/arctic/article/view/3721/8219 https://arcticreview.no/index.php/arctic/article/view/3721/8220 https://arcticreview.no/index.php/arctic/article/view/3721/8221 https://arcticreview.no/index.php/arctic/article/view/3721 doi:10.23865/arctic.v14.3721 Copyright (c) 2023 Bernt Arne Bertheussen https://creativecommons.org/licenses/by/4.0 Arctic Review on Law and Politics; Vol. 14 (2023); 4–20 2387-4562 institutional rent resource rent theory of industrial economics theory of institutional economics stakeholder theory resource-based theory info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion 2023 ftjarlp https://doi.org/10.23865/arctic.v14.3721 2023-12-13T23:52:56Z The article debates the origin of rent in natural-resource based industries (NRBIs) such as fisheries, and how the rent generated can be appropriated. The Norwegian fish harvesting industry is used to illustrate the arguments. It is argued that the industry-specific institutional framework of the fish harvesting industry positively affects the competitive forces of the industry, and thereby its economic performance. Fishery management institutions create high barriers to entry for outside firms, and they dampen internal rivalry between incumbent firms. As a result, the opportunity to earn what this paper labels institutional rent arises. The article further argues that nature itself and how it is managed through, for example, harvesting rules, enables an NRBI to earn resource rent if the players get free or cheap access to the input factor, in this case fish. Finally, the article argues that it is stakeholders other than the harvesting companies that control both the institutional and resource rents, that is, the owners of the natural resource and the authorities who manage it as well as the industry-specific institutional framework. Nevertheless, neither the owners nor the authorities benefit from the industry-specific rent generated. The rent is appropriated by the capital owners and the crew onboard the boats in the form of above-normal profits and above-normal wages. Whether or not such a skewed rent distribution is considered fair and sustainable is a political issue. Article in Journal/Newspaper Arctic Arctic review on law and politics Arctic Review on Law and Politics Arctic Review on Law and Politics 14 |
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Arctic Review on Law and Politics |
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ftjarlp |
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English |
topic |
institutional rent resource rent theory of industrial economics theory of institutional economics stakeholder theory resource-based theory |
spellingShingle |
institutional rent resource rent theory of industrial economics theory of institutional economics stakeholder theory resource-based theory Bertheussen, Bernt Arne Perspectives on Rent Generation and Rent Appropriation in Fisheries |
topic_facet |
institutional rent resource rent theory of industrial economics theory of institutional economics stakeholder theory resource-based theory |
description |
The article debates the origin of rent in natural-resource based industries (NRBIs) such as fisheries, and how the rent generated can be appropriated. The Norwegian fish harvesting industry is used to illustrate the arguments. It is argued that the industry-specific institutional framework of the fish harvesting industry positively affects the competitive forces of the industry, and thereby its economic performance. Fishery management institutions create high barriers to entry for outside firms, and they dampen internal rivalry between incumbent firms. As a result, the opportunity to earn what this paper labels institutional rent arises. The article further argues that nature itself and how it is managed through, for example, harvesting rules, enables an NRBI to earn resource rent if the players get free or cheap access to the input factor, in this case fish. Finally, the article argues that it is stakeholders other than the harvesting companies that control both the institutional and resource rents, that is, the owners of the natural resource and the authorities who manage it as well as the industry-specific institutional framework. Nevertheless, neither the owners nor the authorities benefit from the industry-specific rent generated. The rent is appropriated by the capital owners and the crew onboard the boats in the form of above-normal profits and above-normal wages. Whether or not such a skewed rent distribution is considered fair and sustainable is a political issue. |
format |
Article in Journal/Newspaper |
author |
Bertheussen, Bernt Arne |
author_facet |
Bertheussen, Bernt Arne |
author_sort |
Bertheussen, Bernt Arne |
title |
Perspectives on Rent Generation and Rent Appropriation in Fisheries |
title_short |
Perspectives on Rent Generation and Rent Appropriation in Fisheries |
title_full |
Perspectives on Rent Generation and Rent Appropriation in Fisheries |
title_fullStr |
Perspectives on Rent Generation and Rent Appropriation in Fisheries |
title_full_unstemmed |
Perspectives on Rent Generation and Rent Appropriation in Fisheries |
title_sort |
perspectives on rent generation and rent appropriation in fisheries |
publisher |
University of Tromsø - The Arctic University of Norway, Faculty of Law |
publishDate |
2023 |
url |
https://arcticreview.no/index.php/arctic/article/view/3721 https://doi.org/10.23865/arctic.v14.3721 |
genre |
Arctic Arctic review on law and politics |
genre_facet |
Arctic Arctic review on law and politics |
op_source |
Arctic Review on Law and Politics; Vol. 14 (2023); 4–20 2387-4562 |
op_relation |
https://arcticreview.no/index.php/arctic/article/view/3721/8218 https://arcticreview.no/index.php/arctic/article/view/3721/8219 https://arcticreview.no/index.php/arctic/article/view/3721/8220 https://arcticreview.no/index.php/arctic/article/view/3721/8221 https://arcticreview.no/index.php/arctic/article/view/3721 doi:10.23865/arctic.v14.3721 |
op_rights |
Copyright (c) 2023 Bernt Arne Bertheussen https://creativecommons.org/licenses/by/4.0 |
op_doi |
https://doi.org/10.23865/arctic.v14.3721 |
container_title |
Arctic Review on Law and Politics |
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14 |
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