Inter-Sectoral Competitive Advantage of Madagascar

The author has investigated inter-sectoral competitive advantage of Madagascar through the use of Balassa technique. There is a strong evidence of existence of competitive advantage in the textiles sector in Madagascar. There is also a strong evidence of lack of competitive advantage in the plastic/rubber sector. The majority of the sectors show little evidence of competitive advantage in Madagascar in various degrees. These sectors include: foot wear/head gear; stone/glass; raw hide, skins, leather and furs; chemicals and allied industries; transportation; mineral products; metals; foodstuffs; wood and wood products; and animal and animal products. It is recommended that Madagascar move its resources from less competitive sectors to other sectors such as textiles, machine/electrical, vegetable products and miscellaneous. It is further recommended that Madagascar should work towards attracting foreign direct investment. It should also increase its effort in exploration of new endowments