The Fall and Recovery of the Cuban Economy in the 1990's: Mirage or Reality?

May 1, 2001

Preview Citation

Format: Chicago

Ernesto Hernández-Catá. The Fall and Recovery of the Cuban Economy in the 1990's: Mirage or Reality?, (USA: International Monetary Fund, 2001) accessed December 22, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The collapse of the Cuban economy following the cessation of Soviet assistance gave way to a strong recovery in 1994-96. There are three possible explanations for this recovery: (i) that it never took place; (ii) that it reflected a surge in productivity resulting from stabilization and liberalization in 1993-94; or (iii) that it resulted from a favorable aggregate demand shock. The second explanation-the most persuasive-suggests that a strong and durable expansion will probably not be achieved on the basis of present policies, but that the benefits of a full liberalization of the economy are likely to be considerable.

Subject: Employment, Labor, Labor force, Price controls, Prices, Production, Productivity, Total factor productivity

Keywords: Balance of payments, Baltics, Central and Eastern Europe, Cuba, Demand shock, Eastern Europe, Employment, Fixed capital, GDP deflator, Growth, Growth performance, Labor force, Liberalization, Liberalization measure, Output index, Price controls, Price liberalization, Productivity, Total factor productivity, Transition, WP

Publication Details

Pages:

25
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2001/048
Stock No:

WPIEA0482001
ISBN:

9781451846744
ISSN:

1018-5941

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