Mapping MNEs in Cuba and barriers to their growth

Abstract

Very little is known about the investment climate and operations of MNEs in Cuba due to limited data provided by the Cuban government. In this paper, we explore the investment climate in Cuba and identify factors that limit the activities of MNEs. We also assess the impact of the COVID-19 pandemic and the future prospects for MNEs in Cuba. Our research is based on questionnaires and semi-structured interviews in MNEs operating in Cuba. MNEs consider low macroeconomic stability, the impossibility of acquiring real estate, access to financing and the movement of capital, and profit repatriation as the most problematic factors for their business activities. On the other hand, IPR protection, corruption, the skills and education of the available workforce and the availability of electricity were assessed as the least problematic. Less than half of the MNEs interviewed found positive changes concerning the investment climate in Cuba during recent years. This implies limited prospects for economic growth in the near future.