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

Camilleri, Silvio John and Falzon, Joseph (2013): The Challenges of Productivity Growth in the Small Island States of Europe: A Critical Look of Malta and Cyprus. Published in: Island Studies Journal , Vol. 1, No. 8 (2013): pp. 131-164.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Cyprus, economic growth, growth policies, Malta, productivity, unit labour costs
• Subjects: E - Macroeconomics and Monetary Economics > E0 - General > E01 - Measurement and Data on National Income and Product Accounts and Wealth ; Environmental Accounts; E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E24 - Employment ; Unemployment ; Wages ; Intergenerational Income Distribution ; Aggregate Human Capital ; Aggregate Labor Productivity; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E61 - Policy Objectives ; Policy Designs and Consistency ; Policy Coordination

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