EXPORT PROCESSING ZONES IN THE DOMINICAN-REPUBLIC - TRANSFORMING MANUFACTURES INTO COMMODITIES

This paper examines the performance of Export Processing Zones in the Dominican Republic. It shows that in specializing in unskilled labor-i ntensive export processing in the context of competitive devaluations between Central American countries, the Dominican Republic has experie nced immiserizing employment growth. In these circumstances the export of labor-intensive manufactures is akin to that of primary commoditie s. Exporting countries which rely on unskilled labor and which fail to make the transition to higher value-added production exports are thus likely to experience declining terms of trade. The conclusions of thi s case study are considered to have wider relevance to World Bank and International Monetary Fund inspired structural adjustment programs in the Region.