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The Challenges of Productivity Growth in the Small Island States of Europe: A Critical Look of Malta and Cyprus

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  • Camilleri, Silvio John
  • Falzon, Joseph

Abstract

This paper looks at productivity growth rates in Malta and Cyprus and proposes policies as to how these island states countries might augment their productivity and competitiveness. We identify three possible growth strategies for the islands: an Innovation-Oriented Economy, a Controlled Input-Cost Economy and an Opportunistic Growth Model. In order to infer which strategy might be best suited to the two states, we conduct a comparative analysis amongst different EU countries in terms of productivity yardsticks. We also evaluate trends in Gross Value Added (GVA), employment levels, and Unit Labour Costs (ULCs) in the most important economic sectors of Malta and Cyprus. The research suggests that a Controlled-Input Cost model may be best suited to most Maltese and Cypriot economic sectors. We then propose a series of possible policies aimed at fostering future growth and competitiveness in the two island states.

Suggested Citation

  • Camilleri, Silvio John & Falzon, Joseph, 2013. "The Challenges of Productivity Growth in the Small Island States of Europe: A Critical Look of Malta and Cyprus," MPRA Paper 62489, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:62489
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    References listed on IDEAS

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    Cited by:

    1. Camilleri, Silvio John & Scicluna, Nicolanne & Bai, Ye, 2019. "Do stock markets lead or lag macroeconomic variables? Evidence from select European countries," The North American Journal of Economics and Finance, Elsevier, vol. 48(C), pages 170-186.
    2. Nicholas Sammut & Diana Spiteri & Joseph Paul Sammut & Irene Coppola & Roberta Lepre & Benjamin Lebrun, 2020. "The Status of Sustainable Social Innovation in Malta," Sustainability, MDPI, vol. 12(10), pages 1-10, May.
    3. Petar Kurecic & Filip Kokotovic, 2017. "Examining the "Natural Resource Curse" and the Impact of Various Forms of Capital in Small Tourism and Natural Resource-Dependent Economies," Economies, MDPI, vol. 5(1), pages 1-24, February.

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    More about this item

    Keywords

    Cyprus; economic growth; growth policies; Malta; productivity; unit labour costs;
    All these keywords.

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination

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