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Title: The degree of integration of Malta's financial sector in the European internal market following EU accession
Authors: Abela, Gianfranco
Keywords: Financial services industry -- Malta
Financial crises
Financial services industry -- European Union countries
Issue Date: 2012
Abstract: The Financial Services sector in Malta has grown substantially over the last ten years. Major economic and regulatory reforms by successive administrations since the late 1980's have laid a solid foundation for the growth of this sector. The decision of Malta to join the European Union (EU) is often cited as a major contributor to a marked increase in investment in the local financial sector (Bonavia, 2012; Buttigieg, 2012). Joining the EU allowed Malta to tap the markets of other EU member states, together referred to as the internal market. This dissertation endeavours to test the claim that EU membership was the major factor influencing the growth of the financial sector and that the Maltese financial sector is becoming increasingly integrated in the EU internal market. This thesis has been tested through the use of quantitative data, namely datasets from the IMF, and quantitative data, which was collected through secondary sources and through three interviews with firms and institutions in the local financial sector. The findings point out that the thesis here posited is correct. There has been a clear and measurable increase in the external assets and liabilities position of the Maltese financial sector after the year of accession to the EU compared with the previous years. Furthermore the regional breakdown of these transactions convincingly show that trade with EU countries has increased over these years and has consistently comprised the majority of the total inward and outward investment positions. These results corroborate the views expressed by the executives interviewed, who all pointed out to EU membership as the promoter of growth in the sector. The main implication of this is that further integration will result in shocks in the EU internal market being increasingly felt in Malta. This is an issue of topical interest in view of the grave financial crisis Europe is in at the moment and which would negatively affect Malta's budding financial services sector, one of the pillars of the Maltese economy.
Description: EXECUTIVE M.B.A.
Appears in Collections:Dissertations - FacEma - 2012

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