Mongolian Economy Research Articles

Economic Dynamics in Russia’s Transbaikal and Mongolia

This article presents an analysis comparing the economies in the Transbaikal region (the Republic of Buryatia and Zabaikalsk krai) with the economy of Mongolia. It reveals the similarities and differences in demographic and economic indicators in the neighboring territories and outlines the paths for development of cross-border cooperation.

USING SATELLITE DATA FOR ENVIRONMENTAL IMPACT ANALYSIS IN ECONOMIC GROWTH: THE CASE OF MONGOLIA

Abstract. The Mongolian economy is based on the primary and secondary economic sectors of agriculture and industry. In addition, minerals and mining become a key sector of its economy. The main mining resources are gold, copper, coal, fluorspar and steel. However, the environment and green economy is one of the big problems among most of the countries and especially for countries like Mongolia where the mining is major part of economy; it is a number one problem. The research of the work tested how environmental elements effect to current Mongolian economic growth, which is growing economy because of mining sector. The study of economic growth but the starting point for any study of economic growth is the neoclassical growth model emphasizing the role of capital accumulation. The growth is analysed either in terms of models with exogenous saving rates (the Solow-Swan model), or models where consumption and hence savings are determined by optimizing individuals. These are the so-called optimal growth or Ramsey-Cass-Koopmans. The study extends the Solow model and the Ramsey-Cass-Koopmans model, including environmental elements which are satellite data determine to degraded land and vegetation value from 1995 to 2013. In contrast, we can see the degraded land area increases from 1995 (4856 m2) to 2013 (10478 m2) and vegetation value decrease at same time. A description of the methodology of the study conducted follows together with the data collected and econometric estimations and calibration with environmental elements.

USING SATELLITE DATA FOR ENVIRONMENTAL IMPACT ANALYSIS IN ECONOMIC GROWTH: THE CASE OF MONGOLIA

The Mongolian economy is based on the primary and secondary economic sectors of agriculture and industry. In addition, minerals and mining become a key sector of its economy. The main mining resources are gold, copper, coal, fluorspar and steel. However, the environment and green economy is one of the big problems among most of the countries and especially for countries like Mongolia where the mining is major part of economy; it is a number one problem. The research of the work tested how environmental elements effect to current Mongolian economic growth, which is growing economy because of mining sector. <br><br> The study of economic growth but the starting point for any study of economic growth is the neoclassical growth model emphasizing the role of capital accumulation. The growth is analysed either in terms of models with exogenous saving rates (the Solow-Swan model), or models where consumption and hence savings are determined by optimizing individuals. These are the so-called optimal growth or Ramsey-Cass-Koopmans. The study extends the Solow model and the Ramsey-Cass-Koopmans model, including environmental elements which are satellite data determine to degraded land and vegetation value from 1995 to 2013. In contrast, we can see the degraded land area increases from 1995 (4856 m<sup>2</sup>) to 2013 (10478 m<sup>2</sup>) and vegetation value decrease at same time. <br><br> A description of the methodology of the study conducted follows together with the data collected and econometric estimations and calibration with environmental elements.

Erotic Capital as Societal Elevator: Pursuing Feminine Attractiveness in the Contemporary Mongolian Global(ising) Economy

Abstract Inspired by Bourdieu’s forms of capital, theorists have utilized the additional category of erotic capital as a descriptor of the increasing importance of physical appearance to economic mobility. Although this phenomenon also exists in Mongolia, the pursuit of corporeal attractiveness only depicts one prevalent erotic field highly conceptually intertwined with values of market and modernity. Additionally, the prevalence of this belief in the emancipatory power of attractiveness also overlaps with indigenous concepts of fortune (hishig) and reputation (nerelkhuu), which most likely facilitated its integration in the Mongolian context. As a result, individuals from diverse socioeconomic backgrounds pursue a standard of beauty associated with the wealthy and successful. In particular, women, who have been particularly hard hit by the vagaries of the current Mongolian economy, have increasingly turned to physical appearance capitalization as a means to safeguard their economic and social standing.

A Conceptual Framework for Specialized Senior Secondary Education in Mongolia

This report is intended to assist the Ministry of Education, Culture and Science of Mongolia by making recommendations for elaborating a conceptual framework for new specialized senior secondary school models. The broader context for this report is the ongoing, vibrant reform of the entire Mongolian education sector, from preschool through university. The report targets the high-level skills, which will be required in the coming global economy, to enable the greatest contributions to the Mongolian economy. The goal of the report is to contribute to policy and planning for the eventual establishment of approximately 30 specialized senior secondary schools in Mongolia.A number of recommendations are made with regard to the establishment of specialized senior secondary education in Mongolia. Many of them relate directly to specialized senior secondary education. But, since primary and junior secondary education provide the background preparation for the students who will enter specialized senior secondary education, there are also recommendations about those educational levels, so as better to prepare students for admission into and success in specialized senior secondary education. While the subject of this report is a conceptual framework, it also provides some guidance on implementation of specialized senior secondary education. In particular, the following elements of implementation are covered: required legislation, curriculum development, pilot programs, teacher capacity, development of the national entrance examination and application, and provision for specialized infrastructure. Mongolia is at an exciting moment, both in the improvement of its educational system and in the development of the country as a whole. The former is inextricably linked to the latter, a point well recognized by the Ministry of Education, Culture and Science and one to which it is wholeheartedly devoted. This report is a contribution and vote of confidence to its success.

Effects of grazing and precipitation variability on vegetation dynamics in a Mongolian dry steppe

Grazing and water availability are the primary drivers of vegetation dynamics in grazing-dominated regions of Mongolia with a semi-arid climate and frequent droughts. Nomadic animal husbandry still plays a large part in the economy of Mongolia, but more variable precipitation regime and increase in livestock number have severely affected grassland ecosystems through overgrazing, leading to pasture degradation. This study aimed to examine the effects of grazing exclusion, interannual variation of plant-available precipitation (PAP) and their interaction on the aboveground biomass (AGB) of each dominant species, the AGB of annual species and the total AGB in a Mongolian dry steppe, using long-term field data. To detect the effect of grazing on vegetation dynamics, vegetation surveys were conducted in a non-grazed exclosure zone and a fully grazed area outside the exclosure. We assessed the effects of grazing, PAP and their interaction on AGB parameters using a generalized linear model. A detrended correspondence analysis (DCA) was used to visualize the effects of grazing and PAP on the AGB of each species. Grazing, PAP and their interaction had significant effects on AGB. The effect of grazing on AGB was larger with higher precipitation and higher amounts of AGB (i.e. forage) while AGB was strongly limited in drought years, which resulted in a smaller grazing effect. The current year PAP had the highest impact (r = 0.88, P < 0.01) on AGB. The dominance of annual species was characterized by the amount of PAP in the current and preceding years: annuals dominated in wet years that followed consecutive dry years. The DCA Axis 1 reflected the variation of AGB with interannual variation of PAP while the DCA Axis 2 differentiated the grazing effect. The DCA scatter diagram based on species score illustrated that Artemisia adamsii (an unpalatable herb) was clearly linked to grazing disturbance whereas palatable perennials such as Agropyron cristatum, Stipa krylovii and Cleistogenes squarrosa were related to grazing abandonment and wetter conditions. In brief, number of livestock, hence the grazing impacts on vegetation dynamic in this region could have driven by forage availability, which is mainly controlled by current-year PAP.

A Static CGE Model of the Mongolian Economy

The Mongolian economy has experienced unprecedented growth rates driven by the booming mining sector. At the same time, it has become increasingly dependent on the mining sector to the extent that movements in the international price of mining commodities could have disturbing effects on the economy. In this research, we examine the short-run effects of the developments occurring in the mining sector on the economy by calibrating a PEP standard static CGE model to a 2010 Mongolian social accounting matrix. In particular, we consider two scenarios: an increase in the stock of capital and land possessed by the coal sector and a drop in the world price of metal ores. In the former scenario, we find that the shock leads to increased value added, production, employment and exports in the coal sector, resulting in higher real GDP, exports and investment. Moreover, we do not find the associated Dutch disease effects on the other sectors. In the second scenario, we find that the effects on the productions, value added, employment, real GDP and investment are all negative while real exports and government expenditure increase slightly.

An Analysis on the Coordination Development of Low-carbon Economy in Mongolia

Currently, the global economic growth model is based on the input of resources, especially the input of energy. Throughout the energy structures all over the world, mostly coal, oil, natural gas and other high-carbon fossil fuels, and those high-carbon fossil fuels have become the main source of atmospheric carbon dioxide and other greenhouse gases. Economic growth and energy consumption, there should be causal relationship between economic growth and carbon dioxide emissions, the economic growth model can get rid of the fossil energy constraints, whereas carbon dioxide emissions can be disconnected from the economic growth, to cope with these problems facing the development of low-carbon economy in Mongolia. The research makes use of time-series model to test the causal relationship between economic growth and energy consumption, economic growth and carbon dioxide emissions as well as between energy consumption and carbon dioxide emissions.

Trade Policymaking in a Resource‐rich Landlocked Country: The WTO Review of Mongolia

The aim of this paper is to provide a comprehensive assessment of the Trade Policy Review of Mongolia (TPRM) 2014. The TPRM 2014 demonstrates that the Mongolian economy is relatively open and it has very low formal trade barriers although there remain significant behind‐the‐borders barriers, including poor governance and infrastructure. Being a landlocked country, any major cross‐border‐price differences quickly results in informal trade with neighbouring China, limiting Mongolia's ability to pursue independent commercial policy. Mongolia's growth is not broad based and largely driven by the mining boom, making its economy highly vulnerable to external shocks. While this is not unique to Mongolia, and has been seen in many natural resource‐abundant countries, experience suggests that countries with sound institutions and macroeconomic policies have overcome the so‐called resource curse.

Has foreign investment played a role in Mongolia's export success?

The exposure of the Mongolian economy to international trade in the early 1990s has led to its export growth exceeding GDP growth and a dramatic increase in inflows of foreign direct investment (FDI). Although FDI can act as a powerful channel for export expansion in a developing country like Mongolia, improved export performance could also be due to other factors, such as movements in prices, competitive exchange rates and world income. In spite of Mongolia's superior export performance, as yet, no study has been conducted to investigate the determinants of Mongolian export demand and supply. Using a panel data set covering 1995–2012 for the mining, manufacturing and primary sectors, we analyse the determinants of export performance. Empirical results suggest that higher world income, higher prices for Mongolian exports and increased FDI inflows have led to improved export performance in Mongolia. There is no statistical evidence to suggest that trade liberalisation and improved provision of basic infrastructure have had any impact on Mongolia's export expansion.

Economic Impacts of the Government Investment Policy

The abundant natural resources can bring either positive or negative impact to the country's economy depending on the macroeconomic policies. Mongolia has massive mineral resource dominated by coal, copper, and gold. The Government of Mongolia has started to implement a number of infrastructure projects to decrease the mining project's cost burden caused from the country's weak infrastructure. This paper aims to assess the economic impact of the government investment policy towards the mining sector. In order to investigate the alternative options of the government investment policy, it uses a simulation analysis using the Dynamic Computable General Equilibrium (CGE) model which is developed for Mongolian economy. In the empirical analysis, this paper considers following two policy scenarios: Power plant and Copper refinery. The results suggest that both the policy scenarios have positive impact on the domestic economy, of which making the investment to power plant is the better option for the policy makers.

Japanese Commitment in the Mongolian Economy, Resources and Infrastructure Development

Since liberalisation of the Mongolian economy, Japan has contributed substantially to Mongolia’s economic development and is proud of being the largest donor country to Mongolia. However, due to the recent rapid growth of the Mongolian economy the country will be soon be beyond the scope of oda donations from oecd countries. The Mongolian government oda budget will be reduced and private investment from overseas will have to be enlarged and enhanced. Most of the infrastructures have been supported by foreign government aid in Mongolia, but from now on Mongolia must rely on its own money or foreign private financial sources to develop such infrastructures. However, in the short term the Mongolian government budget is not going to be large enough to support the current increasing demands for infrastructure development. In this transitional period for Mongolia, changing the money source from foreign government aid to private investment, private companies and investors from Japan are also facing this new agenda in Mongolia. There are many issues to consider. Both Japan and Mongolia should mutually solve these issues.

Mongolian Mineral Products and Issues of International Trade

The speedy growth of the Mongolian economy is inherently linked with the development of the mining sector. As a result of continued policies by the Mongolian Government to attract foreign direct investments, the volume of fdi in the mining sector has been increasing steadily. World-class mines of strategic importance, like Tavan Tolgoi and Oyu Tolgoi, have started operating with high rates of coal and copper production and export earnings. However, mineral products continue to be exported to the international market at a price lower than the international market price. In addition, Mongolia’s mineral products exports remain highly disorganised, the quality of mineral products is not meeting international standards, while transportation and logistics solutions to the third market are still insufficient. All of these pressing issues hinder Mongolia’s competitiveness in the international market. This paper argues for more research into those issues experienced in the mining sector and for the need to set up a mineral products exchange in Mongolia.

Nation-building, Ethnicity and Natural Resources

The Mongolian economy has grown rapidly in recent years, thanks to a mining sector based on abundant resources like coal, copper, and gold. The mining boom has been stimulated by Mongolia’s energy-hungry southern neighbour China, which plays a significant role, not only through importing natural resources but also through capital investment in the growing economy. In recent decades some inland port towns, such as Chehee/Shiveehüree and Ganchmod/Gashuunsukhait have grown up along the border between the two countries. Scenes of trucks lining up at customs posts to transport Mongolian coal to China are common. The trade in natural resources clearly has significance not only for the economy but also for nation-building and ethnicity construction. This paper examines the role of ethnic Mongols from China in the economic cooperation between the two countries. It will focus on the story of an ethnic Mongolian trucker, formerly a herder in western Inner Mongolia, discussing the ways in which he has experienced interactions with Chinese and Mongolian nationals, as he identifies himself as a Chinese citizen and an ethnic Mongol.

Establishing an ECA for a Vibrant Economy in Mongolia: Lessons Drawn from the Korean Experience

Establishing an ECA for a Vibrant Economy in Mongolia: Lessons Drawn from the Korean Experience

What drives the recent intensified vegetation degradation in Mongolia – Climate change or human activity?

This study examines the course and driving forces of recent vegetation change in the Mongolian steppe. A sediment core covering the last 55 years from a small closed-basin lake in central Mongolia was analyzed for its multi-proxy record at annual resolution. Pollen analysis shows that highest abundances of planted Poaceae and highest vegetation diversity occurred during 1977–1992, reflecting agricultural development in the lake area. A decrease in diversity and an increase in Artemisia abundance after 1992 indicate enhanced vegetation degradation in recent times, most probably because of overgrazing and farmland abandonment. Human impact is the main factor for the vegetation degradation within the past decades as revealed by a series of redundancy analyses, while climate change and soil erosion play subordinate roles. High Pediastrum (a green algae) influx, high atomic total organic carbon/total nitrogen (TOC/TN) ratios, abundant coarse detrital grains, and the decrease of δ13Corg and δ15N since about 1977 but particularly after 1992 indicate that abundant terrestrial organic matter and nutrients were transported into the lake and caused lake eutrophication, presumably because of intensified land use. Thus, we infer that the transition to a market economy in Mongolia since the early 1990s not only caused dramatic vegetation degradation but also affected the lake ecosystem through anthropogenic changes in the catchment area.

Applying South Korean Development Strategies to Mongolian Economy with Emphasis on Development, Trade and Investment Policies of its Natural Resources Sector

South Korea has transformed its war-torn poverty-stricken economy in early 1960s to one of the highly developed industrial powerhouses in only three...

Analysis of the Returns of Small and Medium-Sized Enterprises in Mongolia

This study analyses the profitability of small and medium-sized enterprises (SMEs) in Mongolia. SMEs play a crucial role in the Mongolian economy and are considered to be the stimulus of economic development in the country. The present paper investigates the factors that affect the performance of SMEs. It examines the relationship between returns, gender, age, education, bank advances, turnover volume, innovation, management experience, labour, interest rates, customer base, inflation and exchange rate based on data collected from 200 SMEs that have different capital structures. The equation specified profitability as the dependent variable and loans, sales, firm age, firm size and interest rates as independent variables. All data except interest rates which were derived from Central Bank data were gathered from a primary field survey. The conclusion to our study is that there is a strong positive correlation between sales growth, bank advances, business size and profitability.

몽골 울란바타르시 토지정보 통합관리시스템 개발

몽골의 수도이자 경제의 중심지인 울란바타르시는 급격한 도시성장에 따라 국토의 난개발과 유목민들의 도시 인구유입이 증가되면서 장기적인 도시계획수립과 토지에 대한 과세를 효율적으로 수행 할 수 있는 기반체계의 필요성이 증대되고 있다. 따라서 몽골정부의 효율적인 도시개발을 위해 토지 및 주요 시설물 등에 대한 디지털 자료의 통합, 토지관련 부서간의 자료 상호공유를 통한 업무의 효율성과 서비스의 질을 향상시킬 수 있는 인프라를 제공할 수 있는 토지정보 통합관리시스템의 개발이 매우 절실하다. 본 연구는 기존 토지관련 시스템의 운영환경과 관련부서의 업무환경을 분석하여 데이터베이스를 재설계하여 시스템을 통합하고 서비스 네트워크를 구성하여 몽골 울란바타르시의 토지등록관리, 토지허가관리, 토지지불관리 업무환경이 통합적 유기적인 환경에서 이루어지도록 하였다. 이를 통하여 장기적인 도시계획 수립, 투명한 부동산 세금행정 근거마련, 도시 인프라 투자의 효율성 제고를 통한 국민 삶의 질 향상에 기여할 수 있는 기반을 제공하였다. Ulaanbaatar city, the capital of Mongolia and the center of Mongolian economy, increasingly needs to have a long-term urban planning and a system to impose a tax on land effectively as insufficient development of land and the moving of nomad into urban areas increases during its rapid growth. Therefore, Mongolian government has to prepare a land management system which provides the infrastructure to improve work efficiency and service quality by integrating digitalized data about land and main facilities and sharing data between related departments. This research analyzed the environment to operate the existing land management system and working environment and redesigned database. Furthermore, it integrated all the existing systems, configured service network, and made working environment for land registration, land permission, land payment management to be processed online. With this, it provides the foundation to improve quality of people's life through the preparation of long term urban planning, clean tax administration of real estate, and reconsideration of efficiency about urban infrastructure investment.

Study on Indoor Environment and Energy Technology of Inner Mongolia Grassland Dwellings

With the development of production and urbanization, many problems such as environmental pollution, energy shortages, ecological degradation, atmospheric warming and so on, have become increasingly serious, which results in that peoples attention of their living environment is further improved. In the wave of national sustainable development, Inner Mongolia autonomous region has come up with certain sustainable development policies since 2001, roundly discussing questions in terms of Inner Mongolia economy, society, resources and environment. The grassland living environment and ecological construction are also included. Taking the grassland habitat's typical living formMongolian yurt as an example, this paper analyses the climate adaptability and green ideas of grassland traditional dwellings, according to natural characteristics and energy resources of the grassland. With the purpose to provide valuable references for the sustainable development of grassland, this article points out some present problems and puts forward the corresponding measures of green renewal and ecological design.