The island of Hispaniola,located in the Caribbean,is divided roughly in half by the two countries that occupy it.The western half is the country of Haiti,and the eastern half is the country of the Dominican Republic.In 2011,per capita real gross domestic product (GDP)in Haiti was roughly $740.In the Dominican Republic,it was almost $9,300.What most likely explains this difference?

Question

Quizplus · Accepted Answer

The per capita real GDP in the Dominican Republic is significantly higher than in Haiti because the Dominican Republic has growth-promoting institutions that encourage economic development. In contrast, Haiti lacks these institutions, which impedes economic growth.

The Island of Hispaniola,located in the Caribbean,is Divided Roughly in Half