Socioeconomic Impact of Mussel Farming in Coastal Areas of Baltic Sea

There are numerous papers explaining the impact of regional development, while the impact of mussel farming in coastal areas is described in the present paper. Mussel farming could potentially develop in coastal areas, thereby creating new jobs and increasing
national budget revenue. The economy of the Baltic Sea region has high potential; the real GDP growth rate was 2.3 per cent per year in the last five years. Agriculture, forestry and fishing sectors provide a low gross value added if compared to other activities. However, when analysing the amount of revenue in the fishery sector and comparing it to other sectors in Pāvilosta municipality, fishery ensures 18 per cent of the total turnover of all companies and ensures work to 6 per cent of working men that is significant for one coastal municipality. Current (existing) long-term interest rate is low and therefore it might seem attractive for potential stakeholders to make investments and to develop industries. Due to the current fleeting fishing quotas, fishing could require major restructuring process to transform the way the existing products are sold and allow other forms of development to be introduced; however, the conversion process would require both political and supportive mechanisms. Targeted funding shifts have helped promote shellfish farming, for instance, in Denmark and Sweden. In 2015, fishing provided employment to 7359 people and 1033 people were employed in marine aquaculture, while wages in the fisheries sector are lower than the national average wage; the pay gap
is considerable, which can be a contributing factor to the development of mussel farming in the eastern Baltic Sea countries where average wages are significantly lower. It should be noted, however, that wages have increased significantly in these countries over the last three years, e.g., the average wage in Latvia increased by 8 per cent in 2017 and 9 per cent in 2018. This increase has also affected the fishing industry. The rapid growth of wages is also influenced by economic growth which is reflected in the GDP growth rate. Changes in remuneration can be analysed together with changes in the population and working population. In order to understand the potential importance of shellfish farming in the coastal area, the financial indicators of Pāvilosta municipality, where a mussel farm was established, were analysed. [...]