IMPACT OF THE MINING AND AGRICULTURE SECTOR ON THE MONGOLIAN ECONOMY
Ganchimeg Gombodorj () and
Karoly Peto ()
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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
Oradea Journal of Business and Economics, 2022, vol. 7, issue 1, 74-85
Increasing the use of natural resources can improve the countryâ€™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 Mongoliaâ€™s traditional economic sector, and it still plays an essential role in the countryâ€™s economy. This paper investigated the interrelation between the agriculture and the mining sectors and their impact on Mongoliaâ€™s economic growth. A multiple-stage regression model was used to analyse the selected variablesâ€™ time series data over 20 years of Mongolia. In addition to the modelâ€™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 countryâ€™s economy. Therefore, it is essential to support agriculture and other secondary sectors based on renewable natural resources and agriculture.
Keywords: Natural resources; sustainability; mining; agriculture; economic growth; Mongolia (search for similar items in EconPapers)
JEL-codes: O41 O53 Q32 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ora:jrojbe:v:7:y:2022:i:1:p:74-85
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