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Impact Of The Mining And Agriculture Sector On The Mongolian Economy

Author

Listed:
  • Ganchimeg Gombodorj

    (Karoly Ihrig Doctoral school of management and business, University of Debrecen, Debrecen, Hungary)

  • Karoly Peto

    (Institute of rural development, regional economy and tourism management, Faculty of economics and business, University of Debrecen, Debrecen, Hungary)

Abstract

Increasing the use of natural resources can improve the country’s wealth, but it has adverse effects caused by improper usage, and it is non-renewable. The depletion of natural resources is a global environmental issue that threatens the livelihoods of billions of people. Moreover, not all resource-rich countries are highly developed. Mongolia is one of the natural resources-rich countries in the world. The agricultural sector is Mongolia’s traditional economic sector, and it still plays an essential role in the country’s economy. This paper investigated the interrelation between the agriculture and the mining sectors and their impact on Mongolia’s economic growth. A multiple-stage regression model was used to analyse the selected variables’ time series data over 20 years of Mongolia. In addition to the model’s sectoral data per capita wealth, other control variables are added to explain economic convergences, human capital impact, and government size. Result proves that the mining sector has a substantial impact on the economic growth of Mongolia. However, agricultural sector growth does not depend on the mining sector. The high dependency from one sector, particularly the extractive sector, warns against the sustainable development of the country’s economy. Therefore, it is essential to support agriculture and other secondary sectors based on renewable natural resources and agriculture.

Suggested Citation

  • Ganchimeg Gombodorj & Karoly Peto, 2022. "Impact Of The Mining And Agriculture Sector On The Mongolian Economy," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 7(1), pages 74-85, March.
    • Handle: RePEc:ora:jrojbe:v:7:y:2022:i:1:p:74-85
    DOI: http://doi.org/10.47535/1991ojbe139
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Natural resources; sustainability; mining; agriculture; economic growth; Mongolia;
    All these keywords.

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

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