Investigation of the returns to scale of fishing enterprises of the primorsky territory
Abstract
The opinion that only large fishing companies can ensure a high level of productivity and, as a whole, the effectiveness of economic activity, is widely spread in economic literature. In this paper, the task is to study the impact of the size/scale of fishing enterprises on their productivity. For this purpose, the stages of quantitative measurement of the scale effect were established. In the framework of this article, the intellectual roots of the concept of returns to scale are examined in detail. The review of literature, studying the correlation between operational size, productivity and other indicators of production efficiency, is given. Using the data for eighteen seaside fishing companies, the indicators of production scale ("The volume of production per one conventional ton of catch") and indicators of efficiency ("The volume of production per one worker") were calculated. Based on the results, it was defined, that large fish producers of Primorye did not always work better in terms of labor productivity. This proves the existence of more complex relations between the size of the enterprise and the productivity of its resources. It is suggested that the differences in productivity are more likely to be caused by differences in production technology, rather than returns to scale. The results demonstrate the importance of distinguishing between the categories "returns to scale" and "returns to size", and suggest that the increase of productivity among small companies can be achieved due to extending of their access to advanced technologies, rather than simply expanding their scale. The research is positioned as a pilot, and suggests further in-depth development of the methodology, taking into account the results obtained.
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References
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