Assessing Mongolia's economic dependence on China: A foreign economic dependece index analysis B.Enkh-Amgalan

Abstract

The influence of foreign economies on Mongolia's economic development is increasing. Key factors such as rapid growth in foreign trade, stable increases in foreign direct investment, foreign debt, and remittances significantly contribute to this growth. Mongolia's economic development is deeply interconnected with the economic conditions of its two neighboring countries, particularly China. China's stable economic growth has a notable impact on Mongolia's economy, necessitating an assessment of whether this effect is short-term or long-term. Understanding the level of economic dependence on China is crucial for informed policymaking. This study confirms a long-term relationship between Mongolia's economy and China's. The foreign economic dependence index, measured at 28.2 percent, highlights a significant reliance on a single country. This underscores the need for Mongolia to diversify its economy and enhance economic engagement with a broader range of countries.