Modeling the Investment Policy of a Fishing Firm: The Case of Russian Fisheries in the Baltic Sea

Author:

Mnatsakanyan A. G.1,Tomkovich A. V.1,Kharin A. G.1

Affiliation:

1. Kaliningrad State Technical University (KSTY)

Abstract

The purpose of the paper is to improve the methodology of fisheries management by expanding the set of factors for investment decisions.Materials and methods. Our work is a further development of the bioeconomic approach, which is based on the interdependence of natural and produced capital in fisheries. Author's solutions are based on methods of analysis and synthesis, and use the modeling of economic processes in fisheries.Results. The paper describes a theoretical model for making investment decisions. This model is used to analyze the investment policy of the firm. The key modeling parameters used are: stock of fish resources, catch size, capital and investment. Our study showed that for this fishery, the main factor in deciding on the optimal level of investment is the ratio of the unit values of existing assets and investments.Practical significance. Although the proposed modified model is preliminary and has a number of limitations, empirical testing allows us to draw conclusions about the possibility of using it to develop optimal production and investment decisions for a fishing company and about the advisability of continuing work in this direction.

Publisher

Russian Federal Research Institute of Fisheries and Oceanography

Subject

General Medicine

Reference15 articles.

1. Volkogon V. A., Sergeyev L. I. 2017. Generalization of the dynamics of the proportions of the main natural cost parameters of the development of the fishing industry // Fisheries of the Far East. No. 1. P. 169-189. (In Russ.)

2. Mnatsakanyan A. G., Kharin A. G. 2012. On some features of the application of the concept of value management for companies whose activities are based on the use of natural resources // Finance and credit. No. 1(481). Р 1219. (In Russ.)

3. Mnatsakanyan A. G., Kuzin V. I., Kharin A. G. 2018. On some current trends in the development of Russian fisheries. Part 2. The problem of modernization of production potential // Baltic Economic Journal. No. 2(22). Р 28-38. (In Russ.)

4. Mnatsakanyan A. G., Kharin A. G. 2022. Investments and development prospects of the Russian fish industry // APK: economics and management. No. 2. Р. 64-74. (In Russ.)

5. Arrow K. J. 1968. Optimal capital policy with irreversible investment. Value, capital and growth: papers in honor of Sir John Hicks. / J.N. Wolfe ed. Edinburgh University Press. Edinburgh. Scotland. p. 1-263.

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