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Achieving the Required Surge in Investment and Growth?

  • Vegard ByeEmail author
Chapter
Part of the Studies of the Americas book series (STAM)

Abstract

This chapter examines the lack of productive investment in the Cuban economy, and the quest for new investments. The new regime for foreign direct investment (FDI) is discussed. Effects of this regime—and particularly the establishment of a Special Development Zone—are compared with the unofficial investments de facto taking place in the private sector, thanks to the increasing family remittances from abroad. The three main sources of foreign currency—export of professional services, family remittances and tourism—are compared to the rapidly dwindling incomes of goods exports. Given Cuba’s obsolete economic structures, is a process of creative destruction put in place? The chapter also offers a balance of the outcome of Raúl Castro’s reform era, concluding that the state of the economy left to the post-Castro generation is worse than it has been since the 1990s.

Keywords

Foreign direct investment (FDI) Family remittances Special Development Zone Foreign currency Creative destruction Macroeconomic outcome 

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Copyright information

© The Author(s) 2020

Authors and Affiliations

  1. 1.Scanteam a.s.OsloNorway

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