By Organisation for Economic Co-Operation and Development
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Extra resources for Oecd Investment Policy Reviews, Caribbean Rim: Costa Rica, Dominican Republic and Jamaica (OECD Investment Policy Reviews)
It benefited from increased investment in infrastructure as a result of tariff reform implemented in 1990, stronger domestic demand, and liberalization of foreign direct investment. The FTZ sector is made of industrial parks, located throughout the country, whose vocation is to manufacture products for export. As firms which settled in the FTZs do not pay import duties, they operate in their own OECD INVESTMENT POLICY REVIEWS – ISBN 92-64-10509-3 – © OECD 2004 33 DOMINICAN REPUBLIC free trade area.
The services sector in the Dominican Republic continues to be very dynamic. Multinational corporations have now entered the wholesale and retail trade sector, particularly through the large supermarkets, the fast-food business, the clothing stores, and franchising. Hotels, bars and restaurants have greatly benefited from the growth in tourism. Transportation has also grown rapidly in recent years, as a result of the modernization of the country’s infrastructure. The 1990s witnessed the arrival of competition in the telecommunication sector, first with the launch in 1992 of TRICOM as a provider of telephone service, and in 2000 when France Telecom and Centennial Dominicana (a subsidiary of Centennial Communication Corporation) entered the wireless and fixed line telephone markets.
Also worth emphasizing is that the external debt service to GDP ratio as well as the external debt service to total exports ratio are also low. 3. 0 Source: IMF and Central Bank of the Dominican Republic. 4. 0 Source: Moody’s Investor Service. 8 per cent. The trade deficit on goods and services was financed by continued remittances from the one million Dominicans leaving abroad. FDI inflows will help finance the current account deficit in 2003 but an increase in external net indebtedness is also possible.