The Fall and Recovery of the Cuban Economy in the 1990s: Mirage or Reality?
25 Pages Posted: 11 Aug 2009
Date Written: December 2000
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.
Keywords: Economic growth, Cuba, Productivity
Suggested Citation: Suggested Citation