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Analysis of the Dutch Disease effect and public financial management in Mongolian economy

Author

Listed:
  • Hiroyuki TAGUCHI

    (Saitama University, Japan)

  • Bulgankhuu GANZORIG

    (Saitama University, Japan)

Abstract

This paper aims to diagnose the Mongolian economy for evidence of the Dutch Disease by applying a vector auto-regression model for the period 1993 2016 under the current market-based regime including resource-booming times. The results indicate a strong possibility that the Mongolian economy has been suffering from Dutch Disease through resource movement and spending effects: the mining boom crowds out manufacturing and fails to contribute to capital accumulation facilitating diversification. Policy implications for Mongolian public financial management suggest using part of the resource fund for public investment in education, health and infrastructure to promote industrial diversification.

Suggested Citation

  • Hiroyuki TAGUCHI & Bulgankhuu GANZORIG, 2018. "Analysis of the Dutch Disease effect and public financial management in Mongolian economy," Journal of Economics and Political Economy, EconSciences Journals, vol. 5(2), pages 132-145, July.
    • Handle: RePEc:cvv:journ1:v:5:y:2018:i:2:p:132-145
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    References listed on IDEAS

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    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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