This study aims to model the welfare of fishermen's households in the coastal area of West Sumatra which is determined by the socio-cultural environment, catches and added value of 373 fishing households with fishing gear by using Partial Least Squares Structural Equation Modeling (PLS-SEM) approach. The contribution of this research lies in the concept of the socio-cultural environment in improving the welfare of fishermen's households through the catch and added value that has been ignored by previous researchers. The results of the study found that the fisherman household welfare model can be achieved through strengthening added value. This study suggests to the government to increase the added value of fishery products through the added value obtained from the difference between the selling price and the cost of materials or other supplies from fishing activities, fish farming, fish handling, fish processing, and distribution in a production process. Furthermore, this study suggests to further researchers to involve the study of the physical environment such as natural conditions as a determinant of the welfare of fishermen's households.
This research is motivated by the catch and the fishermen family welfare in West Sumatra Province is not yet optimal, so this study aims to analyze the factors that affect them. Furthermore, the novelty of this research is to carry out an elaboration of studies on fishermen households by focusing on the analysis of catches and the fishermen family welfare being investigated within a simultaneous equation framework. The population in this study were fishing households in West Sumatra Province which had 498 fishing gears. The sampling in this study used the cluster method, which a total sample of 373 respondents. The important finding in this study is the catch will increase if it is driven by the fishermen family welfare, the type of catch, fishermen productivity and fishermen socio-cultural environment. Furthermore, the fishermen family welfare will improve if it is driven by catch, fishermen socio-cultural environment, selling price of fish and fishermen family happiness. The recommendation from this study is that the government needs to facilitate increasing catches and fishermen family welfare through fishermen insurance programs, institutions, funding and business diversification training based on the bottom up concept so that fishermen have access and stronger bargaining power.
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