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Dominican Republic and Haiti: Country Studies

by Helen Chapin Metz et al

by Helen Chapin Metz et al

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Worker in textile mill<br />

Courtesy Inter-American<br />

Development Bank<br />

US$2 billion in 1996 <strong>and</strong> US$3.8 billion in 1997—almost 75<br />

percent of the isl<strong>and</strong>'s total export earnings.<br />

The <strong>Dominican</strong> <strong>Republic</strong>'s free zones vary widely in terms of<br />

size, ownership, production methods, <strong>and</strong> location. The size of<br />

free zones ranges from only a few hectares to more than 100<br />

hectares, with most located in the south <strong>and</strong> southeast. At least<br />

70 percent of the free-zone companies produce garments,<br />

while others produce footwear, leather goods, electrical <strong>and</strong><br />

electronic items, <strong>and</strong> cigars.<br />

Mining<br />

The mining industry enjoyed extraordinary growth in the<br />

1970s, when the country's major ferronickel <strong>and</strong> dore (gold <strong>and</strong><br />

silver nugget) operations were inaugurated. The contribution<br />

of mining to GDP rose from 1.5 percent in 1970 to 5.3 percent<br />

by 1980, where it remained until the late 1980s. Although the<br />

mining sector employed only about 1 percent of the labor<br />

force throughout this period, it became a major foreignexchange<br />

earner in the 1980s.<br />

Gold <strong>and</strong> silver dore, which occur naturally in the <strong>Dominican</strong><br />

<strong>Republic</strong>, played a critical role in the rapid emergence of min-<br />

141

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