This thesis presents a study of the production structure of the Maltese economy based on the input-output and social accounting matrix frameworks. This study provides an exhaustive analysis of the various interrelations which characterize the flow structure of production activities within the Maltese economy, as well as provides a framework in which it is possible to assess the behaviour, in terms of transactions and transfers, of all the economic agents which characterize the Maltese economic system. This thesis presents the construction of the first symmetric input-output for the Maltese economy, for the year 2000 which has a high level of sectoral disaggregation and which also conforms to both European system of accounts guidelines published in 1995 and the Eurostat input-output methodological guidelines. The constructed symmetric input-output table was subsequently employed for the compilation, via the construction of a set of income expenditure accounts, of the first fully articulated social accounting matrix for Malta for the year 2000. Via the application of input-output and social accounting matrix based linkages analysis a detailed study is carried out in order to assess the underlying inter-industry relations which characterize the flow structure of the Maltese economy. The results obtained also provide policy makers with a broad range of analytically derived estimates with which to evaluate the strategic importance of each industry within the context of the national economy.

This thesis explores the macro-economic history of Cyprus and Malta in the inter-war period. It constructs the first detailed estimates of output at aggregate and sector levels, enabling the analysis of economic growth and the sector structure of the islands‟ economies. It evaluates their performance within the context of economic change on Europe‟s South Eastern periphery and, specifically, in light of the experience of British colonial rule. The thesis argues, first, that economic growth was slow in wider European comparison and as sluggish as in neighbouring countries. It was so despite the two islands' being far less exposed to the political upheavals of the First World War than most other economies in South Eastern Europe. Second, the proximate reasons for their comparatively weak growth performance differed: Cyprus experienced a prolonged agricultural crisis, but participated in the post-depression recovery through the growth in international demand for the output of its copper mining industry. Malta‟s growth was slower than Cyprus due to the combination of declining British military expenditure and the population increasing faster than previously. These differences notwithstanding, the islands were ultimately affected by common problems. Their small overall size had a negative effect on their performance as global protectionism increased and restricted export opportunities. In addition, the colonial governments remained committed to balanced budgets and non-intervention in the economy, limiting their ability to combat the effects of the great depression. As a result, the deteriorating economic situation increased the political tension between the islanders and the colonial governments. The reluctance to mount an effective policy response to the great depression acted as a catalyst to political polarization, leading to violence and the suspension of the islands‟ constitutions.