Trade and Resources: Welfare Effects of the Lake Victoria Fisheries Boom
We examine the welfare implications of the Tanzanian fisheries boom following from the increase in quantities and prices of the Lake Victoria Nile perch export during 1993-2008. We use the model by Brander and Taylor (1997) and try to test it empirically using household level data from a 1993 World Bank household survey and our own survey from 2008. Our results indicate that average income has increased in both rural and urban areas. For the poorest part of the population, rural areas experienced only modestly and non-significantly reductions in the fraction below basic needs, while urban areas had a substantial reduction.