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Regional Convergence and Migration: The Case of Mongolia 1989-2004

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  • Enkh-Amgalan BYAMBAJAV
  • Terukazu SURUGA

Abstract

This paper investigates the convergence of GDP per capita across Mongolia's twenty-two aimags and five regions***. According to international and domestic surveys, one third of the Mongolian population is living under the poverty line. Specifically, poverty is deeper in rural areas than in urban areas. Thus, one main objective of economic growth should be reducing the cross-regional income differences and maintaining real long-run per capita income growth. However, in Mongolia there is almost no research on regional economic development and regional income disparities. This is the first time that the speed of convergence to the steady state has been estimated, using a Mongolian cross-regional data set (1989-2004). The results show that there is convergence across all Mongolian aimags and regions. The speed of convergence towards the steady state position is 3 percent in the Solow model and 4.3 percent in the Ramsey model. That is substantially higher than other convergence studies. The study also finds that migration has played an important role in the evolution of regional disparities.

Suggested Citation

  • Enkh-Amgalan BYAMBAJAV & Terukazu SURUGA, 2009. "Regional Convergence and Migration: The Case of Mongolia 1989-2004," GSICS Working Paper Series 21, Graduate School of International Cooperation Studies, Kobe University.
    • Handle: RePEc:kcs:wpaper:21
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    File URL: http://www.research.kobe-u.ac.jp/gsics-publication/gwps/2009-21.pdf
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    References listed on IDEAS

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    1. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 407-437.
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    3. Mr. Kevin C Cheng, 2003. "Growth and Recovery in Mongolia During Transition," IMF Working Papers 2003/217, International Monetary Fund.
    4. Somesh Kumar Mathur, 2005. "Absolute and Conditional Convergence: Its Speed for Selected Countries for 1961--2001," Macroeconomics 0510023, University Library of Munich, Germany.
    5. Dunlevy, James A & Bellante, Don, 1983. "Net Migration, Endogenous Incomes and the Speed of Adjustment to the North-South Differential," The Review of Economics and Statistics, MIT Press, vol. 65(1), pages 66-75, February.
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    More about this item

    Keywords

    Convergence; GDP per capita; Speed of Convergence; Migration;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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