Trade integration in the European Union : a focus on Malta and Cyprus

Abstract

This dissertation is concerned with the manner in which trade integration between the two small States of Malta and Cyprus developed, tracing their growth independently but also within the European Union since their European Union membership. The discussion is based on the main indicators of trade of both countries, measuring the degree level of trade openness together with the share of imports and exports intra-EU and extra-EU trade for both imports and exports. This dissertation aims to highlight the development of trade integration over a period of 15 years, from the European Union membership in 2004 for both countries to 2019. The research approach of this study involves a comparative case-study method using quantitative analysis. The comparative case study involves comparing the levels of trade integration of goods and services for Cyprus and Malta within the European Union. This study demonstrates that trade integration of goods within the European Union for both countries has declined since the membership of the European Union. On the other hand, the trade integration of services has expanded with the accession to the European Union. Subsequently, it can be concluded that there was a turn in the service sector as a result of expansion and newly introduced services.