Enhancing economic diversification in Mongolia: an input–output analysis

Kadirbyek Dagys*, Wim Heijman, Liesbeth Dries, Nyambat Luvsandorj, Bakyei Agipar, Demberel Ayush

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

The Mongolian economy relies heavily on mineral exports, making it highly vulnerable to external demand and price shocks. Economic diversification is essential to reducing this dependency and enhancing resilience. This study aims to identify key sectors in the Mongolian economy and discuss their potential for economic diversification. An input-output analysis was conducted using the input-output table for 2018, employing backward and forward linkages along with multiplier analysis. The findings highlight energy and manufacturing are key sectors due to their strong linkages and multiplier effects on output, employment, and value-added. In contrast, finance and mining significantly contribute to labour productivity, while labour-intensive public sectors, including education, arts, health, and public administration, play a critical role in household income generation. Prioritizing investments in manufacturing and energy is crucial, as these sectors positively impact upstream sectors by adding value to mineral and livestock-based commodities, thereby playing a vital role in diversification efforts.

Original languageEnglish
Number of pages26
JournalJournal of the Asia Pacific Economy
DOIs
Publication statusE-pub ahead of print - 6 Jan 2025

Keywords

  • economic diversification
  • Ghosh inverse
  • key sectors
  • Leontief inverse
  • linkages and multipliers
  • Mongolia

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