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The Economic and Environmental Impact of Foreign Direct Investment on the Mongolian Coal-Export Sector

Author

Listed:
  • Ragchaasuren Galindev
  • Tsolmon Baatarzorig
  • Nyambaatar Batbayar
  • Delgermaa Begz
  • Unurjargal Davaa
  • Oyunzul Tserendorj

Abstract

This paper examines the impact of Foreign Direct Investment (FDI) intended to increase the exporting capacity of the coal sector on the Mongolian economy and environment by using a recursive dynamic Computable General Equilibrium model. FDI was used to expand the coal-export sector as well as to construct a railway line connecting the Mongolian main coal reserve and the Chinese border. FDI had a positive impact on macroeconomic variables such as GDP, employment, investment, and household consumption but produced a Dutch disease effect in some sectors. The new railway reduced the environmental impact of transporting coal.

Suggested Citation

  • Ragchaasuren Galindev & Tsolmon Baatarzorig & Nyambaatar Batbayar & Delgermaa Begz & Unurjargal Davaa & Oyunzul Tserendorj, 2019. "The Economic and Environmental Impact of Foreign Direct Investment on the Mongolian Coal-Export Sector," Working Papers MPIA 2019-21, PEP-MPIA.
    • Handle: RePEc:lvl:mpiacr:2019-21
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    File URL: https://portal.pep-net.org/document/download/33907
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    References listed on IDEAS

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    Cited by:

    1. Ling Du & Hasan Dinçer & İrfan Ersin & Serhat Yüksel, 2020. "IT2 Fuzzy-Based Multidimensional Evaluation of Coal Energy for Sustainable Economic Development," Energies, MDPI, vol. 13(10), pages 1-21, May.

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    More about this item

    Keywords

    CGE model; Mongolian economy; Mining; Fiscal consolidation;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)

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