IDEAS home Printed from https://ideas.repec.org/a/sae/globus/v19y2018i6p1436-1448.html
   My bibliography  Save this article

Trade Liberalization and Import Intensity in the Mongolian Manufacturing

Author

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

Abstract

This article presents an empirical analysis of the consequences of trade liberalization on import intensity in Mongolia, a ‘least-developed landlocked country’ with weak institutions and severe infrastructure bottlenecks. The theoretical framework employed in modelling is based on industrial organization and international trade literature. Our results suggest that foreign investment stimulates import intensity possibly due to the prevalence of intra-firm trade between subsidies, while the protection of domestic market and state ownership reduces import intensity. There is no statistically significant evidence to suggest that import intensity is lower in unskilled labour-intensive industries. These findings have significant policy implications for further liberalization in order to improve Mongolia’s trade competitiveness.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:globus:v:19:y:2018:i:6:p:1436-1448
    DOI: 10.1177/0972150918794979
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0972150918794979
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0972150918794979?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Gerald K. Helleiner, 1981. "Intra-Firm Trade and the Developing Countries," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-05078-9.
    3. Krueger, Anne O. & Tuncer, Baran, 1982. "Growth of factor productivity in Turkish manufacturing industries," Journal of Development Economics, Elsevier, vol. 11(3), pages 307-325, December.
    4. Kosteas, Vasilios D., 2008. "Trade Protection and Capital Imports in the Mexican Manufacturing Sector," World Development, Elsevier, vol. 36(12), pages 2822-2837, December.
    5. Oyunbadam Davaakhuu & Kishor Sharma & Edward Oczkowski, 2015. "Has foreign investment played a role in Mongolia's export success?," Post-Communist Economies, Taylor & Francis Journals, vol. 27(2), pages 256-267, June.
    6. Penélope Pacheco‐López, 2005. "Foreign Direct Investment, Exports and Imports in Mexico," The World Economy, Wiley Blackwell, vol. 28(8), pages 1157-1172, August.
    7. Sharma, Kishor & Oczkowski, Edward & Jayasuriya, Sisira, 2001. "Liberalization, export incentives, and trade intensity: new evidence from Nepalese manufacturing industries," Journal of Asian Economics, Elsevier, vol. 12(1), pages 123-135.
    8. World Bank, 2007. "Mongolia - Sources of Growth : Country Economic Report," World Bank Publications - Reports 7806, The World Bank Group.
    9. 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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Meenu Tewari & C. Veeramani, 2016. "Network Trade and Development: What Do Patterns of Vertically Specialized Trade in ASEAN Tell Us About India’s Place in Asian Production Networks?," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 16(2), pages 349-388, June.
    3. Knight, J.B. & Sabot, R.H., 1988. "Lewis Through A Looking Glass: Public Sector Employment, Rent-Seeking And Economic Growth," Center for Development Economics 108, Department of Economics, Williams College.
    4. Syed Tehseen Jawaid & Syed Ali Raza & Khalid Mustafa & Mohd Zaini Abd Karim, 2016. "Does Inward Foreign Direct Investment Lead Export Performance in Pakistan?," Global Business Review, International Management Institute, vol. 17(6), pages 1296-1313, December.
    5. Krueger, Anne O., 1992. "Conditions for maximizing the gains from a Western Hemisphere free trade agreement," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 33949, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    6. Florentina Viorica GHEORGHE & Artur - Emilian SIMION, 2018. "The link between international trade flows of "Machinery and transport equipment" and foreign direct investment in Romania," Computational Methods in Social Sciences (CMSS), "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences, vol. 6(1), pages 42-54, June.
    7. Tybout, James R., 1991. "Researching the trade - productivity link : new directions," Policy Research Working Paper Series 638, The World Bank.
    8. Jacob Jordaan & Eduardo Rodriguez-Oreggia, 2012. "Regional growth in Mexico under trade liberalisation: how important are agglomeration and FDI?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(1), pages 179-202, February.
    9. Velu Suresh Kumar, 2022. "Relationship Between FDI Inflows and Export: The Case of India," Shanlax International Journal of Economics, Shanlax Journals, vol. 11(1), pages 18-25, December.
    10. 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.
    11. Trabajo, Frances Myra, 1994. "Agricultural Machinery Industry," Research Paper Series RPS 1994-04, Philippine Institute for Development Studies.
    12. Pavel Kadochnikov, 2006. "An Analysis of Import Substitution in Russia after the 1998 Crisis," Research Paper Series, Gaidar Institute for Economic Policy, issue 95, pages 148-148.
    13. Satish Chand & Kunal Sen, 2002. "Trade Liberalization and Productivity Growth: Evidence from Indian Manufacturing," Review of Development Economics, Wiley Blackwell, vol. 6(1), pages 120-132, February.
    14. Yılmaz Kılıçaslan & Robin C. Sickles & Aliye Atay Kayış & Yeşim Üçdoğruk Gürel, 2017. "Impact of ICT on the productivity of the firm: evidence from Turkish manufacturing," Journal of Productivity Analysis, Springer, vol. 47(3), pages 277-289, June.
    15. David Greenaway, 1987. "Intra‐Industry Trade, Intra‐Firm Trade and European Integration: Evidence, Gains and Policy Aspects," Journal of Common Market Studies, Wiley Blackwell, vol. 26(2), pages 153-172, December.
    16. Koi Nyen Wong & Tuck Cheong Tang, 2009. "New Evidence on the Causal Linkages Between Foreign Direct Investment,Exports and Imports in Malaysia," The IUP Journal of Applied Economics, IUP Publications, vol. 0(1), pages 20-25, January.
    17. Roger Alejandro Banegas Rivero & Marco Alberto Nu ez Ramirez & Jorge Salas Vargas & Luis Fernando Escobar Caba & Sacnict Valdez del R o, 2019. "Landlocked Countries, Natural Resources and Growth: The Double Economic Curse Hypothesis," International Journal of Energy Economics and Policy, Econjournals, vol. 9(5), pages 113-124.
    18. Kishor Sharma & Sisira Jayasuriya & Edward Oczkowski, 2000. "Liberalization and Productivity Growth: The Case of Manufacturing Industry in Nepal," Oxford Development Studies, Taylor & Francis Journals, vol. 28(2), pages 205-222.
    19. Haddad, Mona, 1993. "How trade liberalization affected productivity in Morocco," Policy Research Working Paper Series 1096, The World Bank.
    20. Buffie, Edward F., 1998. "Public sector layoffs, credibility and the dynamics of inflation in a simple macromodel," Journal of Development Economics, Elsevier, vol. 56(1), pages 115-140, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:globus:v:19:y:2018:i:6:p:1436-1448. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.imi.edu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.