Analysis of the Competitiveness of Cuba and its Comparison with Selected Countries in Central America and the Caribbean

Abstract: The foreign sector of the Cuban economy was dominated by sugar exports until the early 1990s, but its volume fell sharply after the collapse of the Soviet Union and the associated loss of major consumer markets. Since then, Cuba has suffered from a chronic trade deficit, which has been around 10% of the country’s GDP in recent years. The aim of this article is to assess the development of competitiveness of the Cuban economy and its comparison with selected countries within the region (Costa Rica, the Dominican Republic, and Nicaragua). The analysis of the selected indicators shows the low level of competitiveness and comparative advantages of Cuba when compared to all of the other countries covered in this review, but at the same time it shows the existence of revealed comparative advantages in the hi-tech industries, which also confirms the comparison of values of the so-called Balassa Index.