TITLE:
The Strong Presence of Chinese Investment in Madagascar: Threat or Opportunity?
AUTHORS:
Miora Andriamampiandra, Mamy Hary Jean Andriamitsiriony, Jean Claude Razaranaina
KEYWORDS:
Chinese Investment in Madagascar, Investment Agreement, Foreign Direct Investment (FDI)
JOURNAL NAME:
Modern Economy,
Vol.12 No.5,
May
10,
2021
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.