Competitive challenges for Maltese exporters

Abstract

The purpose of this dissertation is to explore the export scene in our islands, in order to obtain a clearer view as to what are the competitive challenges faced by Maltese exporters. Various works and studies on exports, trade barriers and the international market were analysed. Such studies have made it clear that exporters in other countries are well aware of their competitive challenges. Therefore, I thought it would be of great benefit, to investigate what are the main challenges for Maltese exporters, as it remains an under explored area, in my opinion. Data was gathered through in-depth interviews with some local exporting companies of different production capacities. This was done in order to obtain a representative sample, companies with both low and high export capacities. The results obtained are the foundation to better understanding the hardships endured by Maltese exporters. It resulted that the majority of the Maltese exporters feel at a disadvantage since the inception of the export venture due to our size and production capacities. In addition, Malta's lack of natural resources, which double the transportation costs, and the current high energy costs, also contributed greatly to these factors. It is important to note that this dissertation was limited to exporters of tangible products only. Being a foundation study for future research, there will be much to elaborate on, and the various challenges discovered here should be properly grouped. The study also concluded that Gozitan exporters endure all the more a greater challenge than their Maltese counterparts, due to the problem of double insulation. Exporting plays a vital role in our country's balance of payments, largely due to the fact that we need to import almost everything, even the materials necessary to make our exports. Therefore, I think that the exporting industry should be analysed in more depth, to address the existing challenges and keep them at a minimum. In this manner, it would be possible to ease the pressures on our country's export potential.