Estimates of output, income, value added and employment multipliers for the Maltese economy

Abstract

The study presents the first published estimates of industry specific multipliers which are derived utilizing a highly disaggregated symmetric input-output table for the Maltese Economy for 2008 which adheres to Eurostat System of National and Regional Accounts (1995). The application of selected input-output models, which are a deterministic class of models, to the symmetric input-output table allows for the estimation of industry specific multipliers. The aim of this study is to derive output, income, value added and employment multipliers at highly disaggregated industry level to study how an exogenous shock to the final demand of each of these industries would affect the Maltese economy. Both the open and the closed Leontief demand driven model (with respective to households) are utilized to derive type I and type II multipliers with which to undertake a comparative analysis of the direct, indirect and induced effects in terms of the income, output, value added and employment generation for each industry within the Maltese Economy.