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

Ragchaasuren Galindev, Tsolmon Baatarzorig, Nyambaatar Batbayar, Delgermaa Begz, Unurjargal Davaa and Oyunzul Tserendorj

Working Papers MPIA from PEP-MPIA

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.

Keywords: CGE model; Mongolian economy; Mining; Fiscal consolidation (search for similar items in EconPapers)
JEL-codes: D58 E62 I32 Q33 (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-ene, nep-int, nep-mac and nep-tra
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:lvl:mpiacr:2019-21

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