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The Relationship of Transaction Costs and Rent Seeking in Capture Fisheries

The capture fisheries sector in Indonesia is expected to have a major contribution to national income. Thecontribution of capture fisheries to state revenue was U$ 29.44 million compared to the acquisition value of fish production reached U$ 9.67 billion in 2018. Indonesia as rich country of fish in the world suffers low income of capture fisheries whose value is only 0.25% of total national income of nature resources and economic leakage of an average U$ 552.16 billion over last twelve years. The low state revenue and economic leakage in capture fisheries sector suspected is as result of rents seeking behaviour. For predicting rents seeking behaviour, this research applicated transaction costs economy approach. The study aims to reveal relationship between transaction, transaction costs and rents seeking in capture fisheries. The research used SEM (structural equation model) constructed from measured variables (observed) and latent variables (unobserved). Respondents came from 49 government agents (63%), 5 politicians (6%), and 24 people (31%) collected via electronic mail from September to October 2021. The results of this study show that transaction costs have an impact on rents seeking in capture fisheries sector. Of all the estimated variables, there is a significant relationship at the significance level of 0.05 and 0.000 (p≤0.05).


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