The Strong Presence of Chinese Investment in Madagascar: Threat or Opportunity?
- 1 University of Fianarantsoa, Fianarantsoa, Madagascar
- 2 University of Fianarantsoa, Fianarantsoa, Madagascar
- 3 University of Fianarantsoa, Fianarantsoa, Madagascar
Abstract
The purpose of this paper aims at giving an answer of whether the strong presence of Chinese investment in Madagascar is a threat or opportunity? In this regard, using the panel data over the period of late-1990s, which is marked by a significant influx of Chinese migrants until 2019, it is found that in one hand, the Republic of Madagascar wishes to attract investors and make the private sector the main engine for its development, the government adopted laws whose goal is to provide attractive and practical climate. It is also important to be able to deal with international competition and to build a tangible competitive advantage. In another hand, the reality is different from which was expected. Actually, the impact in the Malagasy’s economy deceitful and the confidence between the two parties has been undermined. Many Chinese companies do not respect environmental conditions nor labor law. That is why the growing presence of Chinese investors creates dispute between the Malagasy government and the citizens.
- Bardonnet, D. (1964). Asian Minorities in Madagascar (135 p). Extract from the French Directory of International Law.
- Carreau & Julliard (2013). International Economic Law. In Revue francaise d’études politiques africaines (5th ed., No. 26, 103 p). Paris: Dalloz. (In French)
- Donque, G. (1968). Les Problèmes fondamentaux de l’urbanisme tananarivien. Revue de géographie, 13, 7-56.
- Labatut, F., & Raharinarivonirina (1969). Madagascar Historical Study (pp. 170-172). Paris: Editions Fernand Nathan. (In French)
- LMS SLAWECKI (1964). The Origin and Growth of the Chinese Community in Madagascar. Bulletin de Madagascar, 276, 45-57. (In French)
- Parra, A. (1996). The Scope of New Investment Laws and International Instruments. In R. Pritchard (Ed.), Economic Development, Foreign Investment and the Law (pp. 27-48). Location: Transnational corporations.
- Shihata, I. (1993). Legal Treatment of Foreign Investment: The World Bank Guidelines (3rd ed., 155-216). Berlin: Springer.
- Maunganidze, O. (2009). Madagascar: Anatomy of a Recurrent Crisis (Situation Report, pp. 1-11). Washington, DC: Institute for Security Studies.
- PELLERIN (2011). The New Essor. UNDP and UNICEF Hired Frontier Advisory, a South African Advisory Firm Specialising in Asian-African Business Relationships.
- Afrobarometer (2009). Madagascans and Democracy: Principles, Practices, and Participation. Afrobarometer Briefing Paper 64.
- INSTATT’s Report (2012). The National Statistics Institut Is a State Institut Which Establishes and Collect Statistics of All Kinds and Sources. It Carries Out and Produces Any Statitics about National Economic Aspects in Madagascar.
- EDBM (2013) EDBM or Economic Development Board of Madagascar Is an Investment Promotion Agency in Madagascar Which Role Is to Set Objectives to Strengthen the Competitiveness of the Malagasy Private Sector. Colonial Statistics Service.
- Doing Business Report (2020).