Export Processing Zones in Cuba

Willmore, Larry (2000): Export Processing Zones in Cuba. Published in: chapter 4 of The Cuban Economy: Performance,. Problems, Policies and Prospects, edited by A. Ritter (University ... , Vol. 31, No. Pitt Latin American Series (15 May 2004)

Abstract

In a radical shift of policy, Cuba inaugurated in 1997 a number of export processing zones (EPZs). Despite generous tax incentives and an abundant supply of educated labour, investors have not rushed to the EPZs, except for one firm which has its eye on national rather than export markets. This paper argues that Cuba's EPZs have failed not because they face a United States trade embargo, but rather because employers must pay US $1.50 an hour for labour that receives take-home wages equivalent to only 4 US cents an hour.

• Item Type: MPRA Paper
• Language: English
• Keywords: Cuba, export processing zones, wage policy
• Subjects: F - International Economics > F1 - Trade; F - International Economics > F1 - Trade > F16 - Trade and Labor Market Interactions; F - International Economics > F3 - International Finance > F31 - Foreign Exchange; O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O24 - Trade Policy ; Factor Movement Policy ; Foreign Exchange Policy

References

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