The Role of Export Processing Zones: The Case of Dominican Republic

This paper discusses the role of Export Processing Zones (EPZ) with special reference to the Dominican Republic. Three factors in particular are responsible for the expanding EPZ sector in the Dominican Republic (DR), and in turn have influenced its trajectory: l) characteristics of the DR's labor force. 2) its geographic proximity to the United States, and 3) its market access to that country. Among the labor force characteristics are wage rates, labor availability and skills, with the latter appearing to be least important. Geographic proximity to the US, combined with an efficient communications and transportation infrastructure, and US preferential trade programs such as the Caribbean Basin Initiative are also factors of particular relevance to the DR's EPZ program. This model. however, is not likely to contribute to sustainable economic growth in the long run.El rol de las zonas de procesamiento de exportaciones: el caso de República Dominican