World Bank2013-08-192013-08-192000-03-23https://hdl.handle.net/10986/15155The report outlines the macroeconomic stability in the Dominican Republic during the 1990s, suggesting its strong economic growth, and poverty reduction, will contribute to the gradual transformation the country is undergoing towards policy reform. It analyzes poverty, especially severe in rural areas, where misdirected agriculture policies, and insufficient public investments, such as education, limit opportunities. But, the advancing trade liberalization, is expected to reduce export taxes, and although displaced industrial, and agricultural activities will be subjected to adjustment costs, there will nonetheless be improvements in consumers' welfare, and real wages. However, public resources for education remain very low, particularly for secondary education, and this should be considered as key element of the government's poverty reduction strategy, in addition to the establishment of safety nets to curtail malnutrition, and expand health, and sanitation programs, to tackle the extreme poverty. Recommendations suggest, first, to reduce macroeconomic vulnerabilities, through tight fiscal, and monetary policies, and, second, implement reforms, to prod a business environment, and, a strengthened banking sector, through market, and regulatory mechanisms.en-USCC BY 3.0 IGOADJUSTMENT PROCESSAGRICULTURAL SECTORAGRICULTUREAVERAGE ANNUAL GROWTHAVERAGE PRODUCTIVITYAVERAGE PRODUCTIVITY GROWTHBANKING SECTORBASE YEARCAPITAL ACCUMULATIONCAPITAL EXPENDITURESCAPITAL FORMATIONCAPITAL GOODSCAPITAL STOCKCENTRAL BANKCOMPETITIVE ENVIRONMENTCONSTANT RETURNSCONSTANT RETURNS TO SCALECONSUMER PRICE INDEXCOST OF CAPITALCPICURRENT EXPENDITURESDEBTDEFICITSDEMAND FOR MONEYDEPOSIT INSURANCEDETERMINANTS OF GROWTHDEVELOPING COUNTRIESDIVERSIFICATIONECONOMETRIC MODELSECONOMETRICSECONOMIC AGENTSECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC LITERATUREECONOMIC RESEARCHECONOMIC STRUCTUREEDUCATIONAL ATTAINMENTEMPIRICAL RESULTSEMPLOYMENTEQUILIBRIUMEXCHANGE RATEEXPORT TAXESEXPORTSEXTREME POVERTYFACTOR ACCUMULATIONFISCAL YEARFREE TRADEGDPGENERAL EQUILIBRIUM MODELGOVERNMENT EXPENDITURESGROSS DOMESTIC PRODUCTGROWTH ACCOUNTINGGROWTH ANALYSISGROWTH MODELGROWTH RATEGROWTH RATESHOUSINGHUMAN CAPITALIMPORT QUOTASIMPORTSINCOMEINCOME DISTRIBUTIONINCREASE IN CAPITALINFLATIONINSURANCEINTEREST RATEINTEREST RATESINVENTORYIRREVERSIBILITYLABOR INPUTSLABOR SUPPLYLIVING CONDITIONSLONG RUNLONG-RUN GROWTHMACROECONOMIC ADJUSTMENTMACROECONOMIC POLICYMACROECONOMIC STABILITYMACROECONOMIC STABILIZATIONMACROECONOMICSMONETARY POLICYNATIONAL ACCOUNTSNET EXPORTS0 HYPOTHESISOUTPUT GROWTHOUTPUT RATIOPER CAPITA INCOMEPER-CAPITA INCOMEPOLICY IMPLICATIONSPOOR HOUSEHOLDSPOVERTY REDUCTIONPRODUCTION FUNCTIONPRODUCTIVITY CHANGEPRODUCTIVITY GROWTHPRODUCTIVITY INCREASESPROFITABILITYPROMOTING GROWTHPROPERTY RIGHTSPROTECTIONISMPUBLIC EXPENDITURESPUBLIC FINANCEPUBLIC GOODSPUBLIC INVESTMENTPUBLIC SECTORREAL EXCHANGE RATEREAL GDPREAL WAGEREAL WAGESREGRESSION ANALYSISREGULATORY FRAMEWORKRELATIVE POSITIONRURAL POORSAVINGSSTATE INTERVENTIONSTRUCTURAL BREAKT-BILLSTAXATIONTECHNOLOGICAL CHANGETELECOMMUNICATIONSTERMS OF TRADETFPTIME SERIESTOTAL FACTOR PRODUCTIVITYTOTAL FACTOR PRODUCTIVITY GROWTHTRADE LIBERALIZATIONTRANSPORTVALUE ADDEDWAGESWORLD TRADE ORGANIZATIONWTO SOCIAL PLANNINGSOCIAL POLICY REFORMSTRUCTURAL REFORMSECONOMIC GROWTHPOVERTY REDUCTIONPOLICY REFORMAGRICULTURAL POLICIESPUBLIC INVESTMENTSEDUCATIONAL INVESTMENTTRADE LIBERALIZATIONEXPORT TAXESINDUSTRIAL CAPACITYADJUSTMENT COSTSWAGE INCENTIVESCONSUMER CONFIDENCEPOVERTY ALLEVIATION MECHANISMSSAFETY NET POLICIESMALNUTRITIONHEALTH PROGRAMSSANITATION SERVICESMACROECONOMICSFISCAL CONSTRAINTSMONETARY POLICYBUSINESS CONDITIONSBANKING SECTOR REFORMSMARKET REFORMSREGULATORY FRAMEWORKWorld Bank10.1596/15155