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Geographical Simulation Analysis of Economic Corridor Development in Mongolia

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  • ISONO,Ikumo
  • KUMAGAI,Satoru

Abstract

This study investigates the economic impact of developing economic corridors in Mongolia, a landlocked country struggling with severe economic challenges, including elevated distribution costs, increasing import prices, and volatile export revenues driven by fluctuating mineral prices. Using the Institute of Developing EconomiesGeographical Simulation Model (IDE-GSM), a computable general equilibrium model grounded in spatial economics, we assess the potential impacts of enhancing Mongolia’s road and rail infrastructure, alongside the combined effects of service liberalization and the reduction of nontariff barriers. The results highlight the critical role of regional cooperation, sustainable financing strategies, and bold policy reforms in strengthening Mongolia’s trade and connectivity.

Suggested Citation

  • ISONO,Ikumo & KUMAGAI,Satoru, 2025. "Geographical Simulation Analysis of Economic Corridor Development in Mongolia," IDE Discussion Papers 963, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper963
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    File URL: https://ir.ide.go.jp/record/2001301/files/IDP000963_001.pdf
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    More about this item

    Keywords

    Economic Corridors|Infrastructure development|Regional cooperation;

    JEL classification:

    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • F15 - International Economics - - Trade - - - Economic Integration
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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