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Controversies surrounding fishery subsidy policies are widespread. Many stakeholders believe that fishery subsidies play an important role in ensuring the livelihood of fishermen. At the same time, fishery subsidies pose a threat to the stock of fishery resources and affect the sustainable development of fisheries. Based on the panel data of 30 provinces, municipalities, and autonomous regions in China from 2007 to 2017, the article empirically examines the influence of fishery subsidies on fishing. The results of the study show that China′s fishery subsidies are negatively correlated with fishing. On average, for each 1% increase in fishery subsidies, fishing will decrease by 2.9%. That is to say, in general, fishery subsidies are conducive to the sustainable development of fisheries. The results of heterogeneity analysis based on geographic location and economic development level show that fishery subsidies do not have a palpable negative influence on fishing in coastal areas or developed regions, whereas have an obvious adverse influence on fishing in inland areas or underdeveloped regions. The deterioration of the fishing environment and the natural environment explains the occurrence of this differentiation.

Influence of Fishery Subsidies on Fishing: Empirical Test Based on China’s Provincial Panel Data