The current wave of Chinese investment in the country may have significant implications for the development and potential transformation of the Madagascan economy, particularly through the agriculture and manufacturing sectors. Having generated its own economic boom with the help of foreign investment, can Chinese overseas investment play a similar role in fostering technological spillovers and upgrading in other low-income countries? Our 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.
