The growth of aquaculture has been driven by the globalization of seafood products, among other drivers. For example, trade openness may affect aquaculture through knowledge spillovers, especially for developing countries. However, the availability of aquaculture products may also hinder the growth of local products, especially in developed countries. This study explores the impact of trade openness on the development of global aquaculture. Following Squalli and Wilson (2011), we use composite trade share (CTS) as the primary measure of trade openness.
Our estimation results indicate that, for the whole sample, CTS is positively associated with aquaculture production. At the country level, the impact of CTS on aquaculture is significant and positive for the six countries out of the top 10 producing countries. The greatest effect is observed in Chile, followed by Norway, Myanmar, Thailand, India, and China. In other leading aquaculture-producing countries, CTS positively affects aquaculture production in Japan and Russia, while it shows no effect in the US. Although global aquaculture reached a record high in 2022, the share of aquatic exports in the total aquatic production has been declining since its peak in 2014. This downward trend, coupled with persistent trade tensions, may have important implications for the industry’s future development.