Cuba's Reform and Economic Growth: A Comparative Perspective with Vietnam

Journal of Economic Policy Reform, 2015

Posted: 25 Jan 2016

Date Written: December 18, 2015

Abstract

Cuban reform process lags behind the GDP growth reached by the Vietnamese. When comparing the evolution of the different sectors and demand components of GDP, Vietnam has had higher growth rates in all cases, highlighting exports first and investment second. Once the Balance of Payments Constrained Growth model has been estimated, the significant effect of the foreign exchange constraints on growth for both countries is confirmed. However, the Vietnam growth can be explained not only by its export success. International openness, which included the end of the US embargo, and institutional factors also explains the differential of results.

Keywords: Cuba, reform, Vietnam, export, growth, balance of payments constraints, US embargo

JEL Classification: P21, P52, O57, C32, F13, F43

Suggested Citation

Vidal Alejandro, Pavel, Cuba's Reform and Economic Growth: A Comparative Perspective with Vietnam (December 18, 2015). Journal of Economic Policy Reform, 2015. Available at SSRN: https://ssrn.com/abstract=2720531

Pavel Vidal Alejandro (Contact Author)

Pontifical University Javeriana Cali ( email )

Calle 18 # 118-250
Cali, CO Valle del Cauca
Colombia

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