Impact of FDI on Organizational Development in Madagascar

The spectacular growth of FDI flow over the world has consistently become an attractive subject. FDI is considered an important element to fill the gap in job creation and promotion, and knowledge transfer to the host country. Recently however, policies and accompanying incentives to attract FDI have become questionable. This paper has considerably reviewed available literature on FDI and juxtaposed how organizations in Madagascar can benefit from FDI inflow. This research is considered descriptive in nature and made use of secondary. The interdependencies between FDI and OD were econometrically analyzed in using data on Madagascar within the period 1980 to 2015 (inclusive), Data was mainly assessed from INSTAT and Madagascar Central Bank, while other parts were collected from the website of the World Bank and other research papers and magazines. OLS was used in analyzing the data collected and the findings show strong relationship between FDI and OD, but the interdependency between the two variables are marginally significant