The Dominican Republic

by Young, Philip M.; Cardoso, Jaime; Dunn, David; Giustiniani, Alessandro; Keller, Werner; McHugh, Jimmy

• ISBN13: 9781589060463
• ISBN10: 1589060466
• Format: Paperback
• Copyright: 2001-11-01
• Publisher: Intl Monetary Fund

Table of Contents

Preface	vii
Overview	1	(2)
Philip Young
Stabilization and Structural Reforms	3	(9)
Alessandro Giustiniani
Randa Sab
The Lost Decade: 1981-90	3	(2)
The Initial Phase of the Reform Effort: 1991-95	5	(1)
A New Beginning: 1996-2000	6	(1)
The Challenges Ahead	7	(5)
Trade Reform Continues	12	(8)
Jimmy McHugh
Werner Keller
The Trade Regime Prior to the 1990 Reforms	12	(1)
Trade Reforms in the 1990s	13	(3)
Free-Trade Zones	16	(1)
Trade Agreements	17	(1)
Conclusion	18	(2)
Successful External Debt Restructuring	20	(8)
Jaime Cardoso
Werner Keller
The 1980s-First Round of External Debt Restructuring	20	(1)
The 1990s-Second Round of External Debt Restructuring	20	(3)
The 1991 Paris Club Debt Rescheduling	23	(1)
Non-Paris Club Debt Rescheduling: 1991-97	24	(1)
The 1994 Restructuring of Commercial Bank Credits	25	(1)
Evolution of Payments Arrears in 1990-2000	26	(1)
Past, Present, and Future Debt-Service Payments	26	(1)
External Debt Policy	27	(1)
Conclusion	27	(1)
A Review of Fiscal Policy During the 1990s and Current Policy Considerations	28	(9)
David Dunn
Alessandro Giustiniani
Contribution of Fiscal Policy to Macroeconomic Stability During the 1990s	28	(4)
Tax Reform and Administration	32	(3)
Reforming the Budget Process and Redirecting Public Expenditure	35	(1)
Conclusion	36	(1)
Capital Accumulation, Total Factor Productivity, and Growth	37	(10)
John Panzer
Raimundo Soto
Sources of Growth in the Dominican Republic	37	(1)
Sources of Growth Excluding the FTZs	38	(2)
Sources of Growth for the FTZs	40	(1)
The Role of Public Investment in Growth	40	(2)
Conclusion	42	(5)
Money Demand in a Small Open Economy: The Case of the Dominican Republic	47	(15)
Francisco Nadal-De Simone
The Estimated Equations and the Estimation Technique	48	(2)
Unit Roots, Cointegration, and Long-Run Elasticities	50	(1)
The Long-Run Elasticities of the Model	51	(4)
Conclusion and Policy Implications	55	(7)
Exchange Market Pressure, Monetary Policy, and Interest Rates: Recent Evidence from the Dominican Republic	62	(1)
Evan Tanner
Exchange Market Pressure in the Dominican Republic: An Overview	62	(2)
EMP and Monetary Policy: A Vector Autoregression Approach	64	(1)
Estimation Results	65	(3)
Summary and Policy Implications	68
Appendices
I. Governance Issues	10	(33)
V. Economy-Wide Data	43	(14)
VI. A Stylized Open Economy Model	57	(3)
Unit Roots and Cointegration	60