Estimates of Input-Output Multipliers for the Maltese Economy Based on the Symmetric Input-Output Table for 2010

Authors: Ian P. Cassar, Noel Rapa

Corresponding: Ian P. Cassar (ian.p.cassar@um.edu.mt)

Keywords: Input-output analysis, Leontief demand driven model multipliers, Maltese Economy

Doi: http://dx.medra.org/10.7423/XJENZA.2018.2.01

Issue: Xjenza Online Vol. 6 Iss. 2 - December 2018

Abstract:
The study presents the estimates of industry specific multipliers which are derived utilizing a highly disaggregated symmetric input-output table for the Maltese Economy for 2010, published by the National Statistics Office of Malta in 2016. The aim of this study is to derive and analyse a set of output, value added, income and employment multipliers, which illustrate how an exogenous shock to the final demand of each industry would affect the production activities of the Maltese economy on the basis of the Leontief demand driven model. Both the open, as well as the closed Leontief demand driven model are utilized in order to derive the simple and total multipliers. The study presents a comparative analysis of the direct, indirect and induced multiplier effects in terms of the output, value added, income and employment generation for each industry within the Maltese economy. Although there is a considerable degree of heterogeneity in the results obtained across the various multiplier measures, when considering the complete set of multiplier results, a number of industries do feature as relatively strong performers across all categories of multipliers. The accommodation and food services activities feature in the top 15 in almost all categories of multipliers under consideration, confirming the historic tendency for the tourism sector to feature as a key important economic driver. The sectors associated with the public sector, more specifically the public administration, education and human health sectors, were also found to consistently exhibit relatively strong multiplier effects.

Download Article: