Reports
Discussion Papers
No.963 Geographical Simulation Analysis of Economic Corridor Development in Mongolia
March 2025
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 Economies-Geographical 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.
Keywords: Economic Corridors, Infrastructure development, Regional cooperation
JEL classification: R42, F15, O18
PDF available at https://hdl.handle.net/2344/0002001301
Please note that discussion papers are works in various stages of progress and most have not been edited and proofread and may contain errors of fact or judgment. Revised versions of these papers may subsequently appear in more formal publication series. The views expressed in this publication are those of the author(s). The IDE does not guarantee the accuracy of the data included and accepts no responsibility for any consequences arising from its use.