Abstract
This paper has two main objectives. First, we examine whether trade can fully explain the differences between Mauritius and Madagascar in development patterns. Second, based on the analysis of trade patterns in the two countries, we outline the main implications for trade between the two African countries and the Gulf Cooperation Council countries (GCC). Whereas previous studies have focused on the development success of Mauritius, the present paper tries to assess the factors that could explain why Madagascar continued to significantly lag behind Mauritius in economic outcomes and development. We argue that both formal and informal institutions may have played a major role in making Mauritius more successful in its export-led growth relative to Madagascar.
