Exploring the role of seafood-based blue economy factors in economic development in Small Island Developing States: Empirical insights

In recent years, there has been growing advocacy for the blue economy (BE) as a pathway to sustainable development, particularly for coastal and island developing nations. However, despite its potential, empirical evidence supporting the economic contributions of the BE has remained scarce. This paper empirically examined the role of seafood-based BE factors (fisheries and aquaculture, as key components of the BE) in economic growth by analyzing panel data from 29 Small Island Developing States (SIDS) over the period 1998 to 2020, employing slope-heterogeneous dynamic panel estimators. The results showed that seafood-based BE had a statistically positive effect on economic growth in about two-thirds of the SIDS investigated. Furthermore, the findings revealed a bidirectional relationship between seafood-based BE and economic development, indicating mutual reinforcement. Both tourism and remittances contributed to economic growth in SIDS, where a seafood-based BE-led growth approach demonstrated significant potential. Overall, the results highlighted the importance of strengthening the sustainable management of seafood-based BE factors in SIDS and underscored the need for policies that conserve marine resources to ensure that seafood-based BE activities generate long-term, resilient economic gains.