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China's Challenge to India's Economic Hegemony over Mauritius: A Tale of Two Giants and a Pigmy

Author

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  • Vinaye Dey Ancharaz

    (African Development Bank)

Abstract

This paper documents how China is crowding out India's presence in the Mauritian economy by presenting a comparative analysis of Mauritius' engagement with the Asian drivers in terms of trade, investment and aid. China has surpassed India to become Mauritius' second most important import partner. Chinese investments have significantly increased, with China setting up a special economic zone in Mauritius. China's presence is also remarkable in aid, with the Chinese winning several tenders for construction and public infrastructure works as part of a strategy of aid. In contrast, India is virtually absent at this level. The paper flags some critical issues raised by China's unfolding economic dominance and offers policy options for dealing with them.

Suggested Citation

  • Vinaye Dey Ancharaz, 2011. "China's Challenge to India's Economic Hegemony over Mauritius: A Tale of Two Giants and a Pigmy," Journal of African Development, African Finance and Economic Association (AFEA), vol. 13(2), pages 197-222.
    • Handle: RePEc:afe:journl:v:13:y:2011:i:2:p:197-222
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    More about this item

    Keywords

    Africa; China; Mauritius; India; Trade; Foreign-aid;
    All these keywords.

    JEL classification:

    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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