Internal and external constraints of the Cuban production sector

Abstract This paper aims to explain the growth of Cuban production sector between 1975 and 2014 by considering both demand supply factors simultaneously. The research provides new empirical data on this topic through application a simultaneous equation model that considered effect product internal external constraints most relevant economy, impacts these over time. Its results confirm was primarily limited two factors: On one hand, an overly centralized regulatory framework reduces global efficiency economy; and, other foreign exchange deficit restricts its import capacity sustained capital stock. Therefore, sector's could be fostered greater decentralization implementation industrial commercial policies geared make exports more competitive.