The Assembly Industries in Haiti: Causes and Effects, 1967–1973

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Abstract
We have seen that beginning with 1967 the assembly industries in Haiti have expanded extremely rapidly because of the availability of low cost and trainable labor, of the favorable treatment accorded to American components assembled abroad under Item 807 of the Tariff Schedules of the United States, and to a lesser degree because of extremely generous tax incentives offered by the Haitian government to firms engaged in the sector. The Haitian share of total imports under this item into the United States increased from less than 0.1% in 1967 to 0.75% in 1973. It seems likely that in the medium term, the expansion of this sector will continue and that Haiti, with its labor surplus and the absence of pressures emanating from unions, will remain an attractive site for off-shore assemblies by American firms.

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