Effects of Major League Baseball on Economic Development in the Dominican Republic

Abstract

This paper examines the growing economic impact of MLB on the Dominican economy. After introducing the Dominican baseball experience, it examines the rapid growth of salaries paid to Dominican-born major league players and provides perspective on how the growth in those salaries relates to growth in Dominican GDP. Because relatively few players account for most of the earnings by Dominican MLB players, the spending and investment patterns of these particular individuals are explored. The paper also examines the growing economic impact of the MLB academies at the grassroots level in Dominican neighborhoods.

Keywords: Baseball, Dominican Republic, sports salaries

JEL Classification: Z22, Z28