An economic analysis of the removal of levies on the Maltese manufacturing industry

Abstract

The scope of this dissertation is to evaluate, from an economic perspective, the introduction of import levies as well as their dismantling effects on the Maltese Manufacturing Industry. These themes are tackled in Chapter 1 and Chapter 2. The structure of the manufacturing industry is analysed in Chapter 3. Also, a discussion in Chapter 5, is presented on the expected implications of tariff liberalisation on Malta's Main Manufacturing Sectors together with strategic guidelines for Industrial Restructuring programs are presented in Chapter 6 . In Chapter 4, a quantitative analysis is carried out which projects the impact of tariff liberalisation, common whether Malta opts for full membership or establishes a Free Trade Area with the European Union .. The results are evaluated both at aggregate level, to gauge its impact on the current account, and at sectoral level to assess its implications for specific main industries. This is carried out by conducting a simulation utilising a static, partial equilibrium methodology, SMART, jointly developed by UNCTAD and the World Bank. This is based on a set of assumptions and have strict limitations. Therefore, the main objective of this chapter, is to give guidelines of the expected impacts and provide a basis for further research