MPIA-12595 A Static CGE Model of the Mongolian Economy


The Mongolian economy has experienced unprecedented growth rates driven by the booming mining sector. At the same time, it has become increasingly dependent on the mining sector to the extent that movements in the international price of mining commodities could have disturbing effects on the economy. In this research, we examine the short-run effects of the developments occurring in the mining sector on the economy by calibrating a PEP standard static CGE model to a 2010 Mongolian social accounting matrix. In particular, we consider two scenarios: an increase in the stock of capital and land possessed by the coal sector and a drop in the world price of metal ores. In the former scenario, we find that the shock leads to increased value added, production, employment and exports in the coal sector, resulting in higher real GDP, exports and investment. Moreover, we do not find the associated Dutch disease effects on the other sectors. In the second scenario, we find that the effects on the productions, value added, employment, real GDP and investment are all negative while real exports and government expenditure increase slightly.


Project leader: Ragchaasuren Galindev

Project researchers: Tsolmon Baatarzorig | Telmen Tur | Tuvshintugs Batdelger | Nasantogtokh Nyamdorj | Munkh-Ireedui Bayarjargal

Scientific mentors: Erwin Corong

Journal publication

Authors Co-Authors Title of paper Title of Economic Review Bibliographic references
Tsolmon Baatarzorig Ragchaasuren Galindev, Helene Maisonnave Effects of Ups and Downs of the Mongolian Mining Sector Environment and Development Economics

Volume 23, Issue 5
(October 2018),
pp. 527-542

Working Papers

Title Modified Size Comments Recommendations
A static CGE model of the Mongolian economy 2016-02-16 1713.52KB 0 0

Policy Briefs

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A static CGE model of the Mongolian economy 2016-05-10 460.67KB 0 0

Final report

Title Modified Size Comments Recommendations
2015-06-29 1410.73KB 0 0


Title Modified Size Comments Recommendations
2014-07-25 276.7KB 0 0

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