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Export performance during economic transition in Mongolia

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  • Oyunbadam Davaakhuu
  • Kishor Sharma
  • Yapa M.W.Y. Bandara

Abstract

Whilst there is a consensus among economists that export-oriented development strategy is superior to inward-oriented strategy, doubts whether export-orientation can solve the problems of developing countries remain very strong. The purpose of this paper is to contribute to this debate using the experience of Mongoliaôthe country, which was little known to the rest of the world until the early 1990s. Results suggest a significant rise in export intensity following the adoption of export-oriented strategy. There is strong statistical evidence to suggest that foreign investment and lower unit labor cost have positively contributed to export expansion in Mongolian manufacturing. Our findings also indicate that industry protection and the state ownership retard export performance suggesting further liberalization in trade and investment policy, and privatization of state-owned enterprises to improve export competitiveness.

Suggested Citation

  • Oyunbadam Davaakhuu & Kishor Sharma & Yapa M.W.Y. Bandara, 2014. "Export performance during economic transition in Mongolia," Economic Analysis and Policy, Elsevier, vol. 44(4), pages 442-450.
    • Handle: RePEc:eee:ecanpo:v:44:y:2014:i:4:p:442-450
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    Cited by:

    1. Xiaowei Wen & Lin Li & Sangluo Sun & Qinying He & Fu-Sheng Tsai, 2019. "The Contribution of Chicken Products’ Export to Economic Growth: Evidence from China, the United States, and Brazil," Sustainability, MDPI, vol. 11(19), pages 1-13, September.
    2. Kishor Sharma & Oyunbadam Davaakhuu, 2015. "Trade Policymaking in a Resource‐rich Landlocked Country: The WTO Review of Mongolia," The World Economy, Wiley Blackwell, vol. 38(9), pages 1350-1367, September.
    3. Vijaykumar Dhannur & Ashwin R. John, 2021. "Foreign direct investment and export performance using the hierarchical Bayesian vector autoregression framework," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(7), pages 1679-1685, October.
    4. Le, Thai-Ha & Tran-Nam, Binh, 2018. "Relative costs and FDI: Why did Vietnam forge so far ahead?," Economic Analysis and Policy, Elsevier, vol. 59(C), pages 1-13.
    5. Oyunbadam Davaakhuu & Kishor Sharma & Yapa M. W. Y. Bandara, 2018. "Trade Liberalization and Import Intensity in the Mongolian Manufacturing," Global Business Review, International Management Institute, vol. 19(6), pages 1436-1448, December.
    6. Zhang, Jing, 2019. "Oil and gas trade between China and countries and regions along the ‘Belt and Road’: A panoramic perspective," Energy Policy, Elsevier, vol. 129(C), pages 1111-1120.
    7. Tran, Nguyen Van & Alauddin, Mohammad & Tran, Quyet Van, 2019. "Labour quality and benefits reaped from global economic integration: An application of dynamic panel SGMM estimators," Economic Analysis and Policy, Elsevier, vol. 63(C), pages 92-106.

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