On the Determinants of Foreign Capital Flows - DAAD partnership ...

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FDI US
1970 1980 1990 2000 2010
Year
With the EPZ in Figure fulfilling 5.1 its FDI role Inflows from its from setting 1976-2009 up in 1970, in US the $ Million level of FDI inflows from
1976 till 1990 has been quite stable with an trend upwards in the mid 80’s till 1990 where
FDI reached about $41.02 million. However, from 1991 Mauritius entered in the league for
outward investors where firms wanted to operate in lower wage sites, thus the country had to
struggle to keep its foreign inflows from declining. Such an attempt had been successful with
FDI stabilising from 1991 till 1996 where it started to adopt an upward trend.
In 1998, FDI unfortunately dropped down to some $ 12.02 million with a rise in exchange
rate and a fall in both GDP and domestic investment. 2000 was a marking year where the
BOI was set up and France Telecom's purchased 40% share of Mauritius Telecom as part of
their strategic alliance. The great downturn in 2001 was a return to normal FDI flows in the
country after the exceptional surge occurring in 2000. (UN Conference on Trade and
Development 2002). As from 2004, an upward trend started with considerable FDI inflows
coming from USA with the purchase of equity by the US firm Covance Laboratories Ltd.
From then onwards, investment flows picked up year by year with the flourishing tourism
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