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A Macroeconomic Review of the Dr

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A Macroeconomic Review of the Dominican Republic

Carlos A. Morales

Prof. Tamburro

Macroeconomics

Fairleigh Dickinson University-Madison

The country of the Dominican Republic is one of rich culture, breath taking panoramas, political shifts and economic turmoil. Its location in the central Caribbean makes it the perfect getaway place, its unique economic composure makes it a great country to observe and learn from. There are many things to be said about the way the country has been shaped due to politics and other factors that affect the economy directly. The bottom line is that the Dominican Republic has been struggling in seeking economic prosperity and to further evaluate the issue we shall take a closer look in this paper.

Christopher Columbus discovered the Island of Hispañola in 1492. The native Indians called the island “Quisqueya” meaning the mother of all countries perhaps due to its influence on the rest of islands. The following settlers were cruel to the natives and within fifty years reduced the population of about one million to approximately five hundred habitants. During the 1600s French setters took over the western part of the island but it was later ceded by Spain in 1697 becoming the Republic of Haiti. The Haitians conquered the whole island in 1822 and held it until 1844, when forces led by Juan Pablo Duarte, the hero of Dominican independence, drove them out and established the Dominican Republic as an independent state. Today the island is divided between the Dominican Republic and Haiti.

The trend analysis of the gross domestic product indicates that the economy of the Dominican Republic is growing steadily and expanding. The trend of the Dominican GDP also shows a dramatic increase from $6.6 billion dollars in 1980 to a whopping $17.3 billion dollars in the key year of…...

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