TY - JOUR
T1 - Enhancing economic diversification in Mongolia
T2 - an input–output analysis
AU - Dagys, Kadirbyek
AU - Heijman, Wim
AU - Dries, Liesbeth
AU - Luvsandorj, Nyambat
AU - Agipar, Bakyei
AU - Ayush, Demberel
PY - 2025/1/6
Y1 - 2025/1/6
N2 - 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.
AB - 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.
KW - economic diversification
KW - Ghosh inverse
KW - key sectors
KW - Leontief inverse
KW - linkages and multipliers
KW - Mongolia
U2 - 10.1080/13547860.2024.2447150
DO - 10.1080/13547860.2024.2447150
M3 - Article
AN - SCOPUS:85214238404
SN - 1354-7860
JO - Journal of the Asia Pacific Economy
JF - Journal of the Asia Pacific Economy
ER -