Growth Diagnostics for a Resource-Rich Transition Economy : The Case of Mongolia

Ianchovichina, Elena ; Gooptu, Sudarshan

World Bank, Washington, DC

关键词: ACCESS TO CAPITAL;    ACCESS TO INFORMATION;    ACCOUNTING;    AGRICULTURE;    AIR;   

DOI  :  10.1596/1813-9450-4396
RP-ID  :  WPS4396

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper uses a growth diagnosticsapproach à la Hausmann, Rodrik, and Velasco (HRV) toidentify the most 'binding' constraints to privatesector growth in Mongolia - a small, low-income,mineral-rich, transition economy. The approach of applyingthe HRV methodology is useful in those cases where a lack ofdata prevents us from estimating shadow prices to identifythe most 'binding' constraint to growth. We findthat although Mongolia is not liquidity constrained and hasgrown rapidly in recent years, economic growth has beennarrowly based. Investment has flowed mainly into a smallnumber of firms operating in mining and construction. Thelow level of private investment in sectors outside miningand construction has been due to low returns - a result ofcostly and unreliable transportation services; lengthy andcomplex transit procedures, including customs and traderules; distortionary taxes; coordination failures, at bothdomestic and international levels; and growing corruption.Poor financial intermediation is also a problem that haskept the cost of finance high, although lower than inprevious years. Alleviating these binding constraints willensure that Mongolia maintains the path towards sustained,broad-based growth.