Resilient Growth, Persisting Inequality : Identifying Potential Factors Limiting Shared Prosperity in the Dominican Republic

Iwulska, Aleksandra; Galrão Carneiro, Francisco; Reyes, José-Daniel; Sánchez-Martín, Miguel Eduardo

Resilient Growth, Persisting Inequality : Identifying Potential Factors Limiting Shared Prosperity in the Dominican Republic

Autores

Iwulska, Aleksandra

Galrão Carneiro, Francisco

Reyes, José-Daniel

Sánchez-Martín, Miguel Eduardo

Editor

World Bank Group, Washington, DC

Descripción

The Dominican Republic (DR) has recorded exceptional growth over the past twenty years and has closed the gap with the Latin America and Caribbean (LAC) region. While in the early 1990s the DRs per capita income was only about 57 percent that in LAC, it has climbed to around 90 percent nowadays. However, the countrys ability to reduce poverty and improving equity has been less stellar. This note presents some stylized facts of the DR economy that might help understand this phenomenon. In doing so, the note addresses the following three questions: (i) Has growth been inclusive in the DR?; (ii) Why has the DR economy grown so rapidly?; and (iii) Why has growth not led to further improvements in equity? This note tentatively argues that some potential factors explaining the latter are the decline in real wages despite increasing productivity, special economic zones that are relatively isolated from the rest of the economy, and the States limited capacity for fiscal redistribution.

Palabras clave

ACCOUNTABILITY, ACCOUNTING, AGRICULTURE, BAILOUT, BANK POLICY, BANKING CRISIS, BARGAINING, CAPACITY BUILDING, CAPITAL STOCK, CASH TRANSFER, CENTRAL BANK, COLLECTIVE ACTION, COMPETITIVENESS, DEBT, DEBT SERVICE, DEBT STOCK, DEVELOPMENT AGENCY, DEVELOPMENT BANK, DEVELOPMENT INDICATORS, ECONOMIC GROWTH, ECONOMIC OPPORTUNITIES, ECONOMIC PERFORMANCE, ECONOMIES OF SCALE, EDUCATION LEVEL, EMPLOYMENT GROWTH, EQUIPMENT, EXCESS SUPPLY, EXPENDITURE, EXPENDITURES, EXPORTERS, EXPORTS, FINANCIAL CRISIS, FINANCIAL SERVICES, GDP, GINI INDEX, GLOBAL ECONOMY, GROWTH PERFORMANCE, GROWTH RATE, GROWTH RATES, HIGH EMPLOYMENT, HIGH GROWTH, HUMAN CAPITAL, INCOME GROWTH, INSURANCE, INTERNATIONAL DEVELOPMENT, JOB CREATION, LABOR FORCE, LABOR MARKET, LABOR UNIONS, LEVY, LONG RUN, LONG-TERM GROWTH, LOW LEVEL EQUILIBRIUM, MINIMUM WAGES, OPEN UNEMPLOYMENT, OPPORTUNITY COST, PER CAPITA INCOME, POLICY RESEARCH, POLITICAL ECONOMY, POSITIVE EXTERNALITIES, POVERTY LINE, POVERTY RATE, POVERTY RATES, POVERTY REDUCTION, PRODUCTIVITY, PRODUCTIVITY GROWTH, PUBLIC FINANCES, PUBLIC POLICIES, PUBLIC SECTOR, PUBLIC SECTOR DEBT, PUBLIC SERVICE, PUBLIC SERVICES, PUBLIC SPENDING, RAPID GROWTH, REAL EXCHANGE RATES, REAL WAGES, RECAPITALIZATION, REDISTRIBUTIVE POLICIES, RELATIVE IMPORTANCE, RETURN, SAFETY, SAFETY NETS, SMALL BUSINESS, SOCIAL CAPITAL, SOCIAL SECURITY, SOCIAL SPENDING, SUBSIDIARIES, SUPPLIERS, TAX, TAX COLLECTION, TAX REVENUES, TAXATION, TELECOMMUNICATIONS, TOTAL FACTOR PRODUCTIVITY, TOTAL OUTPUT, TRADE COMPETITIVENESS, TRANSPORT, UNEMPLOYMENT, UNEMPLOYMENT RATE, UNEMPLOYMENT RATES, UNSKILLED JOBS, UNSKILLED LABOR, VALUE ADDED, WAGES, WEALTH