The Dominican Republic

1914 Words4 Pages

While there is no exact definition of an emerging country, it can be said that countries whose economies have gone from a phase of unproductivity or underdevelopment to a full economic development are emerging countries. They are also called developing countries.
According to the International Monetary Fund (IMF) (Fund, 2014), the main features of emerging countries are:
• Great living standard of the population between the low and medium class;
• HDI (Human Development Index): between the middle and upper levels;
• The income per capita (GDP per capita) between 5,000 to $ 8,000;
• The industrial sector in development;
• Growth of infrastructure (ports, roads, railways, airports, etc.);
• Attracting foreign capital for investment in the productive …show more content…

Thus, Dominican Republic is considered as an emerging country nowadays. It has been a long path for the Dominican economy is considered as an emerging economy. Thus, to understand this route it is important to point out all the economic models performed to be considered as an emerging economy.
2. Dominican economic models background
An economic model is defined from the country’s economy core activity, which revolves around the other, and the destination of the output generated by this activity. For many years the main economic activity of the Dominican Republic was the sugar industry, whose production is mainly destined for the foreign market. Hence, from that the word agro-export sugar model.
Some countries are coffee or banana agro-exporters, others are based on industrial production for export, others in services. However, each country has its economic model.
Since the birth of the Dominican Republic, in 1844, the country has had approximately three economic models: an agro-export model, the engine of growth rested on the production and export of various traditional agricultural products (sugar, coffee, cocoa and snuff); the import substitution model that comes with the famous Law 299 of 1969 that tried to develop an industry sector of light transformation; and a service model based on three sectors: tourism, free zones and …show more content…

Agriculture contributes just 7% and the remaining 55% is distributed among other sectors, including the public sector (World Bank, 2016). But if it is added to the value of domestic commercial the import trade amount, equivalent to 30% of the GDP, it can be said that trade in general is the main sector where most of the accumulation of capital is concentrated. And within trade the key is the importation activity, which is financed mainly with foreign exchange provided by tourism, remittances and foreign investment (World Bank,

More about The Dominican Republic

Open Document