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Socialism, Spillovers and Markets in Cuba

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  • Camilla Jensen

Abstract

This article undertakes an empirical evaluation of Cuba's new development strategy placing tourism at the heart of the process of incorporating markets into a socialist system. The principal research question is whether the introduction of markets related to the Cuban tourism complex has been as successful in establishing viable backward linkages to industry as claimed. Drawing on a multitude of quantitative and qualitative sources, the article demonstrates that backward linkage building has been quite successful and even made possible a transformation of Cuba's formerly so dependent trade structures. However, there are signs that backward linkages are not as viable as could be desired. Other complementary reforms beside the introduction of markets are necessary, such as fighting soft budget constraints in user and producer firms. The article concludes that it will be difficult to fight the roots of the inherited incentive problem without initiating fundamental labour market reforms.

Suggested Citation

  • Camilla Jensen, 2003. "Socialism, Spillovers and Markets in Cuba," Post-Communist Economies, Taylor & Francis Journals, vol. 15(3), pages 435-459.
    • Handle: RePEc:taf:pocoec:v:15:y:2003:i:3:p:435-459
    DOI: 10.1080/1463137032000139098
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    References listed on IDEAS

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    1. Alan Gelb & Gary Jefferson & Inderjit Singh, 1993. "Can Communist Economies Transform Incrementally? The Experience of China," NBER Chapters, in: NBER Macroeconomics Annual 1993, Volume 8, pages 87-150, National Bureau of Economic Research, Inc.
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    3. Bartlomiej Kaminski, 2000. "Industrial Restructuring as Revealed in Hungary's Pattern of Integration into European Union Markets," Europe-Asia Studies, Taylor & Francis Journals, vol. 52(3), pages 457-487.
    4. Camilla Jensen, 2002. "Foreign direct investment, industrial restructuring and the upgrading of Polish exports," Applied Economics, Taylor & Francis Journals, vol. 34(2), pages 207-217.
    5. Gelb, Alan & Jefferson, Gary & Singh, Inderjit, 1993. "Can Communist economies transform incrementally? China's experience," Policy Research Working Paper Series 1189, The World Bank.
    6. Bent Dalum & Keld Laursen & Gert Villumsen, 1998. "Structural Change in OECD Export Specialisation Patterns: de-specialisation and 'stickiness'," International Review of Applied Economics, Taylor & Francis Journals, vol. 12(3), pages 423-443.
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    Cited by:

    1. Laura J. Enríquez, 2010. "The Cuban alternative to neoliberalism," International Journal of Development Issues, Emerald Group Publishing Limited, vol. 9(2), pages 92-112, July.

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