Growth Trends and Economic Impacts of Selected Industries on the Puerto Rico Economy

• Autor(a) principal: Westeren, Knut Ingar
• Data de Publicação: 2000
• Tipo de documento: Artigo
• Idioma: por
• Título da fonte: Informe Gepec (Online)
• Texto Completo: https://e-revista.unioeste.br/index.php/gepec/article/view/9586
• topic: Porto Rico; estratégias de crescimento; exportação; substituição de importação.

The main purpose of this article is to account for the difference between the GDP and GNP growth patterns in the Puerto Rico economy over the last four decades, where GDP represents the total output of the economy while GNP represents the total income remaining on Puerto Rico. We focus on growth strategies in general and on how the effects of one of the major economic policies, section 936 of the Internal Revenue Code (936 IRC), has influenced the development of the Puerto Rico economy in particular. The analysis shows that substantial parts of the income created from Puerto Rico’s industrial expansion have been transferred to the U.S. by the large exports-producing companies in Puerto Rico. We also demonstrate by model calculations that growth strategies based on expansion in service and import substitution sectors would have been more favorable for increasing employment, income and related production activities.