Total Factor Productivity and Decomposition of Fisheries Economy in Coastal Areas of Mainland China and Taiwan: Using the DEA-Malmquist Index

Using the DEA-Malmquist index, total factor productivity (TFP) of fisheries economies in 12 mainland China and Taiwan coastal areas, regional differences in economic efficiency in these areas, and capture and aquaculture TFP and its decomposition, are analyzed from 1996 to 2015. Technical efficiency change (TEC) and technology progress (TP) promoted improvement of fisheries total factor productivity (TFP). Taiwan fisheries TFP was greater than that of mainland China, when average TFP values (1.056 and 1.026, respectively) are calculated over 19 time periods. The Taiwan Fisheries Association has played a key role in improving fisheries TFP. Slow growth was experienced in capture-based fisheries on both sides of the Taiwan Strait, with TEC promoting and TP hindering TFP; TFP in mainland China was slightly higher than on Taiwan, with average values over 19 time periods being 1.010 and 1.005, respectively. In aquaculture, TE and TEC promoted TFP growth; TFP in Taiwan was higher than on mainland China over 19 time periods, averaging 1.077 and 1.032, respectively. A comparison of fisheries and management practices on mainland China and Taiwan facilitates development of new international fisheries; we propose vigorous investment in aquaculture, establishment of fisheries cooperatives, protection of natural fishing resources, and encouragement of large-scale farming.