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Mongolia's International Trade: Impact of Its Geographical Location

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Abstract

This paper examines the influence of Mongolia's landlocked location between Russia and China on the country's international trade patterns through the use of an augmented gravity model. The results are basically consistent with the prediction of the gravity model with some unexpected results on per capita GDP and the WTO dummy. Further, this paper discusses relevant policy implications.

Suggested Citation

  • Jinhwan Oh & Orgilbold Tumurbaatar, 2011. "Mongolia's International Trade: Impact of Its Geographical Location," Working Papers EMS_2011_02, Research Institute, International University of Japan.
  • Handle: RePEc:iuj:wpaper:ems_2011_02
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    File URL: http://www.iuj.ac.jp/workingpapers/index.cfm?File=EMS_2011_02.pdf
    File Function: First version, 2011
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    References listed on IDEAS

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    3. Alan Deardorff, 1998. "Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?," NBER Chapters,in: The Regionalization of the World Economy, pages 7-32 National Bureau of Economic Research, Inc.
    4. Combes, Pierre-Philippe & Lafourcade, Miren & Mayer, Thierry, 2005. "The trade-creating effects of business and social networks: evidence from France," Journal of International Economics, Elsevier, vol. 66(1), pages 1-29, May.
    5. Howard J. Wall, 1999. "Using the gravity model to estimate the costs of protection," Review, Federal Reserve Bank of St. Louis, issue Jan, pages 33-40.
    6. Keith Head & Thierry Mayer, 2000. "Non-Europe: The magnitude and causes of market fragmentation in the EU," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 136(2), pages 284-314, June.
    7. Chan-Hyun Sohn, 2005. "Does The Gravity Model Explain South Korea'S Trade Flows?," The Japanese Economic Review, Japanese Economic Association, vol. 56(4), pages 417-430.
    8. David Hummels & James Levinsohn, 1995. "Monopolistic Competition and International Trade: Reconsidering the Evidence," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 799-836.
    9. Simon J. Evenett & Wolfgang Keller, 2002. "On Theories Explaining the Success of the Gravity Equation," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 281-316, April.
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    11. Baldwin, Richard, 1993. "The Potential for Trade Between the Countries of EFTA and Central and Eastern Europe," CEPR Discussion Papers 853, C.E.P.R. Discussion Papers.
    12. Tiiu Paas, 2000. "Gravity Approach For Modeling Trade Flows Between Estonia And The Main Trading Partners," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 4, Faculty of Economics and Business Administration, University of Tartu (Estonia).
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    Cited by:

    1. Maritza Elizabeth BERMEO-VELASQUEZ & Jinhwan OH, 2016. "Patterns And Potentials Of Peru'S International Trade:A Gravity Approach," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 16(2), pages 41-52.

    More about this item

    Keywords

    Mongolia; International trade; Trade patterns and determinants; Geographic location; Gravity model;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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