Productivity development in Icelandic, Norwegian and Swedish fisheries

This article analyses the Total Factor Productivity (TFP) performance of fisheries in Iceland, Norway and Sweden during the period 1973 to 2003. We measure TFP growth using real gross value added as output and capital input, labour input and a stock input index based on the major fish stocks. In developed neighbouring countries, we expect rapid diffusion of fishing technology innovations contributing to productivity convergence. In addition, innovations in the public regulation and the industrial organization may also have influenced productivity growth during the period. We find that Iceland had the highest annual TFP growth. Accounting for stock changes, it amounts to 3%, while the corresponding figures for Sweden and Norway are 2.8% and 0.8%, respectively. Despite best practice fishing technologies being widely available, we find no evidence of productivity convergence among the three countries.