Where Africa Meets Asia: Chinese Agricultural and Manufacturing Investment in Madagascar

Yunnan Chen and David G. Landry

No 2016/5, SAIS-CARI Working Papers from Johns Hopkins University, School of Advanced International Studies (SAIS), China Africa Research Initiative (CARI)

Abstract: Madagascar's abundant natural resources, low labor costs, and geographic location make it a potentially attractive destination for Chinese outward investment as rising wages in China and domestic competition increasingly drive firms to "go out." The current wave of Chinese investment in the country may have significant implications for the development and potential transformation of the Madagascan economy, particularly for agriculture and manufacturing. This research finds some evidence of limited technology transfer occurring from Chinese firms in Madagascar, yet currently, Chinese investment remains small in scope, and is also constrained by a problematic policy environment.

Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:cariwp:20165

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