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 difference in per capita real gross domestic product (GDP) between Haiti and the Dominican Republic can be attributed to the fact that the Dominican Republic has better growth-positive institutions than Haiti. These institutions include things like political stability, well-functioning markets, and effective governance, all of which encourage economic growth. Haiti has struggled with political instability, weak institutions, and poor governance, which have hindered its ability to grow economically.

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