The role of multinational companies in the economic development of Malta

Abstract

This paper is mainly confined to a study of the Multinational Company as a means of developing the Maltese economy. Many are the arguments directed at the Multinational Company, and very often they are applicable to a much wider sphere of industry. However the emphasis here is laid on the Multinational Company as an institution and especially on its relevance to Malta's economic development. Research for this paper had had two phases. Phase one was mainly desk research pertaining to the theoretical aspect. Phase two was more analytical and, since it concerned mainly the situation in Malta, it consisted of a survey of the leading Multinational Companies established here. A selective sample of eight Multinationals representing a cross-section of our industry, was drawn up. The survey was carried out in the form of a free discussion with the general manager or managing director of the company, following a questionnaire. To supplement this, problems of general industrial development were also discussed with officials of the Malta Development Corporation. The theme unfolds itself as follows. In the first chapter there is a definitional inquiry of the Multinational Company as an institution. Chapter two shows the importance of the Multinational Companies which are operating in Malta. Their various economical contributions, together with the other problems which arise, are discussed. The role of the Multinational company in attaining the objectives of the development plan are described in the third chapter. The problem of industrial integration and conflicts which arise from the divergent interests of the Multinational Company and government are also discussed. Chapter four is concerned with the bargaining power of government, whose function is to actualize the potential development benefits from the Multinational Corporation. Chapter five proposes two functions to be developed more intensively. The chapter ends with a summary of the main arguments and a conclusion to the whole subject of the dissertation.