Export Processing Zones in Cuba

Larry Willmore

MPRA Paper from University Library of Munich, Germany

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.

Keywords: Cuba; export processing zones; wage policy (search for similar items in EconPapers)
JEL-codes: F1 F16 F31 O24 (search for similar items in EconPapers)
Date: 2000-05
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:123138

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