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Export Processing Zones in Cuba

Author

Listed:
  • Willmore, Larry

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.

Suggested Citation

  • Willmore, Larry, 2000. "Export Processing Zones in Cuba," MPRA Paper 123138, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:123138
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    More about this item

    Keywords

    Cuba; export processing zones; wage policy;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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