Mining Booms and Sustainable Economic Growth in Mongolia—Empirical Result from Recursive Dynamic CGE Model
This research aims to lay out a framework to quantify the impacts of mining booms on the macro-economy in Mongolia, a country that is increasingly dependent upon its mining sector. The study uses a dynamic computable general equilibrium (CGE) model to examine the long-term effects on the economy wit...
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| Format: | Article |
| Language: | English |
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MDPI AG
2019-05-01
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| Series: | Economies |
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| Online Access: | https://www.mdpi.com/2227-7099/7/2/51 |
| _version_ | 1798034757042307072 |
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| author | Davaajargal Lkhagva Zheng Wang Changxin Liu |
| author_facet | Davaajargal Lkhagva Zheng Wang Changxin Liu |
| author_sort | Davaajargal Lkhagva |
| collection | DOAJ |
| description | This research aims to lay out a framework to quantify the impacts of mining booms on the macro-economy in Mongolia, a country that is increasingly dependent upon its mining sector. The study uses a dynamic computable general equilibrium (CGE) model to examine the long-term effects on the economy with three sets of scenarios: (1) a moderate boom in the productivity of agriculture, manufacturing, coal mining and coal service sectors; (2) a drop in the world price of coal and metal ores; and (3) the combination of these two scenarios. We assume that these shocks are seismic, and the findings are important for policymakers to implement policy to deal with the negative impact of mining booms. Our study result shows that reinvestment in the agriculture and manufacturing sectors could help to mitigate the resource curse, and suggests that suitable macroeconomic management and prudent administration of the mining sector’s windfall income are important. |
| first_indexed | 2024-04-11T20:48:43Z |
| format | Article |
| id | doaj.art-e05aaf0bb4674dec9be38fbbd10fdabf |
| institution | Directory Open Access Journal |
| issn | 2227-7099 |
| language | English |
| last_indexed | 2024-04-11T20:48:43Z |
| publishDate | 2019-05-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Economies |
| spelling | doaj.art-e05aaf0bb4674dec9be38fbbd10fdabf2022-12-22T04:03:57ZengMDPI AGEconomies2227-70992019-05-01725110.3390/economies7020051economies7020051Mining Booms and Sustainable Economic Growth in Mongolia—Empirical Result from Recursive Dynamic CGE ModelDavaajargal Lkhagva0Zheng Wang1Changxin Liu2University of Chinese Academy of Sciences (UCAS), No. 19(A) Yuquan Road, Shijingshan District, Beijing 100049, ChinaUniversity of Chinese Academy of Sciences (UCAS), No. 19(A) Yuquan Road, Shijingshan District, Beijing 100049, ChinaUniversity of Chinese Academy of Sciences (UCAS), No. 19(A) Yuquan Road, Shijingshan District, Beijing 100049, ChinaThis research aims to lay out a framework to quantify the impacts of mining booms on the macro-economy in Mongolia, a country that is increasingly dependent upon its mining sector. The study uses a dynamic computable general equilibrium (CGE) model to examine the long-term effects on the economy with three sets of scenarios: (1) a moderate boom in the productivity of agriculture, manufacturing, coal mining and coal service sectors; (2) a drop in the world price of coal and metal ores; and (3) the combination of these two scenarios. We assume that these shocks are seismic, and the findings are important for policymakers to implement policy to deal with the negative impact of mining booms. Our study result shows that reinvestment in the agriculture and manufacturing sectors could help to mitigate the resource curse, and suggests that suitable macroeconomic management and prudent administration of the mining sector’s windfall income are important.https://www.mdpi.com/2227-7099/7/2/51dynamic CGE modeltotal factor productivitynatural resourcesMongolia |
| spellingShingle | Davaajargal Lkhagva Zheng Wang Changxin Liu Mining Booms and Sustainable Economic Growth in Mongolia—Empirical Result from Recursive Dynamic CGE Model Economies dynamic CGE model total factor productivity natural resources Mongolia |
| title | Mining Booms and Sustainable Economic Growth in Mongolia—Empirical Result from Recursive Dynamic CGE Model |
| title_full | Mining Booms and Sustainable Economic Growth in Mongolia—Empirical Result from Recursive Dynamic CGE Model |
| title_fullStr | Mining Booms and Sustainable Economic Growth in Mongolia—Empirical Result from Recursive Dynamic CGE Model |
| title_full_unstemmed | Mining Booms and Sustainable Economic Growth in Mongolia—Empirical Result from Recursive Dynamic CGE Model |
| title_short | Mining Booms and Sustainable Economic Growth in Mongolia—Empirical Result from Recursive Dynamic CGE Model |
| title_sort | mining booms and sustainable economic growth in mongolia empirical result from recursive dynamic cge model |
| topic | dynamic CGE model total factor productivity natural resources Mongolia |
| url | https://www.mdpi.com/2227-7099/7/2/51 |
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