Growth Diagnostics for a Resource-Rich Transition Economy : The Case of Mongolia
This paper uses a growth diagnostics approach à la Hausmann, Rodrik, and Velasco (HRV) to identify the most 'binding' constraints to private sector growth in Mongolia - a small, low-income, mineral-rich, transition economy. The approach o...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2007/11/8691107/growth-diagnostics-resource-rich-transition-economy-case-mongolia http://hdl.handle.net/10986/7520 |
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okr-10986-7520 |
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| recordtype |
oai_dc |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO CAPITAL ACCESS TO INFORMATION ACCOUNTING AGRICULTURE AIR AIR POLLUTION AIR TRANSPORT ALLOCATION OF CREDIT BALANCE OF PAYMENTS BANK DEPOSIT BANK LOANS BANKING SECTOR BANKING SYSTEM BANKRUPTCY BANKRUPTCY LAWS BENCHMARKING BINDING CONSTRAINT BOND BOND MARKET BONDS BORDER CROSSING BOTTLENECKS BUDGET CONSTRAINT CAPITAL ACCOUNT CAPITAL FLOWS CAPITAL FORMATION CAPITAL MARKETS CAPITAL REQUIREMENT CAPITAL SHARE CAPITAL STOCK CAPITAL STOCKS CENTRAL BANK CLAIMANTS COLLATERAL COLLATERAL REQUIREMENTS COMMERCIAL BANK COMMERCIAL BANK ASSETS COMMERCIAL BANK LENDING COMMERCIAL BANK LOAN COMMERCIAL BANK LOANS COMMERCIAL BANKS COMMODITY PRICE COMMODITY PRICES CONFLICT OF INTEREST CONTRACT ENFORCEMENT COORDINATION FAILURE COORDINATION FAILURES CORPORATE GOVERNANCE COST OF TRANSPORT COUNTRY RISK COUPON COUPON RATE CREDIT INFORMATION CREDIT RISK CREDIT WORTHINESS CREDIT WORTHINESS RATINGS CREDITWORTHINESS DEBT DEBT LEVELS DEBT MATURITY DEBT RECOVERY DEPOSIT DEPOSIT INTEREST DEPOSITORS DEPOSITS DEVELOPING COUNTRIES DISPUTE RESOLUTION DOMESTIC CAPITAL DOMESTIC CREDIT DOMESTIC FINANCIAL MARKET ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICY ECONOMIC THEORY ECONOMIES OF SCALE ELASTICITY ENVIRONMENTAL DEGRADATION EQUIPMENT EXCESS LIQUIDITY EXPENDITURE EXPORT GROWTH EXPORT SHARE EXPORTERS EXPORTS EXTERNAL DEBT EXTERNAL FINANCE EXTERNALITIES EXTERNALITY FINANCIAL INSTITUTIONS FINANCIAL SYSTEM FISCAL POLICIES FLOATING EXCHANGE RATE FOREIGN COMPETITION FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN FUNDS FOREIGN INVESTMENT FOREIGN MARKETS FREIGHT FREIGHT MOVEMENT FUEL GDP GLOBAL ECONOMY GLOBAL TRADE GOVERNMENT POLICIES GOVERNMENT REVENUE GOVERNMENT SPENDING GROSS DOMESTIC PRODUCT HIGH TRANSPORT HUMAN CAPITAL IMMOVABLE ASSETS INCOME GROUPS INCOME TAX INFLATION INFLATION RATE INFLATIONARY PRESSURES INFORMATION TECHNOLOGY INSPECTION INSTRUMENT INSURANCE INSURANCE COMPANIES INTEREST RATE SPREAD INTEREST RATE SPREADS INTEREST RATES INTERNATIONAL AIR SERVICES INTERNATIONAL BANK INTERNATIONAL FINANCE INTERNATIONAL MARKETS INTERNATIONAL STANDARDS INTERNATIONAL TRADE INVENTORY INVESTMENT CLIMATE INVESTMENT PROJECTS JUDICIAL SYSTEM LABOR MARKET LACK OF TRANSPARENCY LAND OWNERSHIP LEGAL FRAMEWORKS LENDERS LENDING INTEREST RATES LIQUIDITY LIQUIDITY RATIO LIVING STANDARDS LOAN LOAN AGREEMENTS LOAN MATURITY LOANS TO INDIVIDUALS LOCAL FINANCE LONG-TERM DEBT MACRO-STABILITY MACROECONOMIC ENVIRONMENT MACROECONOMIC MANAGEMENT MACROECONOMIC MODELS MACROECONOMIC PERFORMANCE MACROECONOMIC POLICIES MACROECONOMIC STABILITY MARGINAL UTILITY MARKET FAILURES MARKET INFORMATION MARKET SHARES MATURITIES MATURITY STRUCTURE MICRO FINANCE MICROECONOMIC ANALYSES MIDDLE INCOME COUNTRIES MONETARY FUND MOTOR VEHICLES NATIONAL SAVINGS NATURAL DISASTERS OPEN ECONOMY PEAK PERIOD PENSION PENSION FUNDS PERSONAL INCOME POLICE POPULATION GROWTH PRIVATE CREDIT PRIVATE DEBT PRIVATE INVESTMENT PRODUCTION FUNCTION PRODUCTIVITY PROFIT MAXIMIZATION PROPERTY RIGHTS PURCHASING POWER RAIL RAIL LINK RAIL TRANSPORT RATE OF RETURN RATES OF RETURN REAL GDP REAL INTEREST REAL INTEREST RATE REMITTANCE REMITTANCES RESERVE RESERVES RETAIL TRADING RETURN RETURNS RISK MANAGEMENT RISK PREMIUM RISK PREMIUMS ROAD ROUTE SAFETY SAFETY NETS SERVICE RELIABILITY SHADOW PRICES SHORT-TERM DEBT SMALL BUSINESSES STOCK MARKET TAX TAX CODE TAX RATE TAX RATES TELECOMMUNICATIONS TRADE SECTOR TRAFFIC TRANSIT TRANSITION ECONOMY TRANSPARENCY TRANSPORT TRANSPORT COSTS TRANSPORT FACILITATION TRANSPORT NETWORK TRANSPORT SERVICES TRANSPORTATION TRANSPORTATION SERVICES WEALTH WORKING CAPITAL |
| spellingShingle |
ACCESS TO CAPITAL ACCESS TO INFORMATION ACCOUNTING AGRICULTURE AIR AIR POLLUTION AIR TRANSPORT ALLOCATION OF CREDIT BALANCE OF PAYMENTS BANK DEPOSIT BANK LOANS BANKING SECTOR BANKING SYSTEM BANKRUPTCY BANKRUPTCY LAWS BENCHMARKING BINDING CONSTRAINT BOND BOND MARKET BONDS BORDER CROSSING BOTTLENECKS BUDGET CONSTRAINT CAPITAL ACCOUNT CAPITAL FLOWS CAPITAL FORMATION CAPITAL MARKETS CAPITAL REQUIREMENT CAPITAL SHARE CAPITAL STOCK CAPITAL STOCKS CENTRAL BANK CLAIMANTS COLLATERAL COLLATERAL REQUIREMENTS COMMERCIAL BANK COMMERCIAL BANK ASSETS COMMERCIAL BANK LENDING COMMERCIAL BANK LOAN COMMERCIAL BANK LOANS COMMERCIAL BANKS COMMODITY PRICE COMMODITY PRICES CONFLICT OF INTEREST CONTRACT ENFORCEMENT COORDINATION FAILURE COORDINATION FAILURES CORPORATE GOVERNANCE COST OF TRANSPORT COUNTRY RISK COUPON COUPON RATE CREDIT INFORMATION CREDIT RISK CREDIT WORTHINESS CREDIT WORTHINESS RATINGS CREDITWORTHINESS DEBT DEBT LEVELS DEBT MATURITY DEBT RECOVERY DEPOSIT DEPOSIT INTEREST DEPOSITORS DEPOSITS DEVELOPING COUNTRIES DISPUTE RESOLUTION DOMESTIC CAPITAL DOMESTIC CREDIT DOMESTIC FINANCIAL MARKET ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICY ECONOMIC THEORY ECONOMIES OF SCALE ELASTICITY ENVIRONMENTAL DEGRADATION EQUIPMENT EXCESS LIQUIDITY EXPENDITURE EXPORT GROWTH EXPORT SHARE EXPORTERS EXPORTS EXTERNAL DEBT EXTERNAL FINANCE EXTERNALITIES EXTERNALITY FINANCIAL INSTITUTIONS FINANCIAL SYSTEM FISCAL POLICIES FLOATING EXCHANGE RATE FOREIGN COMPETITION FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN FUNDS FOREIGN INVESTMENT FOREIGN MARKETS FREIGHT FREIGHT MOVEMENT FUEL GDP GLOBAL ECONOMY GLOBAL TRADE GOVERNMENT POLICIES GOVERNMENT REVENUE GOVERNMENT SPENDING GROSS DOMESTIC PRODUCT HIGH TRANSPORT HUMAN CAPITAL IMMOVABLE ASSETS INCOME GROUPS INCOME TAX INFLATION INFLATION RATE INFLATIONARY PRESSURES INFORMATION TECHNOLOGY INSPECTION INSTRUMENT INSURANCE INSURANCE COMPANIES INTEREST RATE SPREAD INTEREST RATE SPREADS INTEREST RATES INTERNATIONAL AIR SERVICES INTERNATIONAL BANK INTERNATIONAL FINANCE INTERNATIONAL MARKETS INTERNATIONAL STANDARDS INTERNATIONAL TRADE INVENTORY INVESTMENT CLIMATE INVESTMENT PROJECTS JUDICIAL SYSTEM LABOR MARKET LACK OF TRANSPARENCY LAND OWNERSHIP LEGAL FRAMEWORKS LENDERS LENDING INTEREST RATES LIQUIDITY LIQUIDITY RATIO LIVING STANDARDS LOAN LOAN AGREEMENTS LOAN MATURITY LOANS TO INDIVIDUALS LOCAL FINANCE LONG-TERM DEBT MACRO-STABILITY MACROECONOMIC ENVIRONMENT MACROECONOMIC MANAGEMENT MACROECONOMIC MODELS MACROECONOMIC PERFORMANCE MACROECONOMIC POLICIES MACROECONOMIC STABILITY MARGINAL UTILITY MARKET FAILURES MARKET INFORMATION MARKET SHARES MATURITIES MATURITY STRUCTURE MICRO FINANCE MICROECONOMIC ANALYSES MIDDLE INCOME COUNTRIES MONETARY FUND MOTOR VEHICLES NATIONAL SAVINGS NATURAL DISASTERS OPEN ECONOMY PEAK PERIOD PENSION PENSION FUNDS PERSONAL INCOME POLICE POPULATION GROWTH PRIVATE CREDIT PRIVATE DEBT PRIVATE INVESTMENT PRODUCTION FUNCTION PRODUCTIVITY PROFIT MAXIMIZATION PROPERTY RIGHTS PURCHASING POWER RAIL RAIL LINK RAIL TRANSPORT RATE OF RETURN RATES OF RETURN REAL GDP REAL INTEREST REAL INTEREST RATE REMITTANCE REMITTANCES RESERVE RESERVES RETAIL TRADING RETURN RETURNS RISK MANAGEMENT RISK PREMIUM RISK PREMIUMS ROAD ROUTE SAFETY SAFETY NETS SERVICE RELIABILITY SHADOW PRICES SHORT-TERM DEBT SMALL BUSINESSES STOCK MARKET TAX TAX CODE TAX RATE TAX RATES TELECOMMUNICATIONS TRADE SECTOR TRAFFIC TRANSIT TRANSITION ECONOMY TRANSPARENCY TRANSPORT TRANSPORT COSTS TRANSPORT FACILITATION TRANSPORT NETWORK TRANSPORT SERVICES TRANSPORTATION TRANSPORTATION SERVICES WEALTH WORKING CAPITAL Ianchovichina, Elena Gooptu, Sudarshan Growth Diagnostics for a Resource-Rich Transition Economy : The Case of Mongolia |
| geographic_facet |
East Asia and Pacific Mongolia |
| relation |
Policy Research Working Paper; No. 4396 |
| description |
This paper uses a growth diagnostics
approach à la Hausmann, Rodrik, and Velasco (HRV) to
identify the most 'binding' constraints to private
sector growth in Mongolia - a small, low-income,
mineral-rich, transition economy. The approach of applying
the HRV methodology is useful in those cases where a lack of
data prevents us from estimating shadow prices to identify
the most 'binding' constraint to growth. We find
that although Mongolia is not liquidity constrained and has
grown rapidly in recent years, economic growth has been
narrowly based. Investment has flowed mainly into a small
number of firms operating in mining and construction. The
low level of private investment in sectors outside mining
and construction has been due to low returns - a result of
costly and unreliable transportation services; lengthy and
complex transit procedures, including customs and trade
rules; distortionary taxes; coordination failures, at both
domestic and international levels; and growing corruption.
Poor financial intermediation is also a problem that has
kept the cost of finance high, although lower than in
previous years. Alleviating these binding constraints will
ensure that Mongolia maintains the path towards sustained,
broad-based growth. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Ianchovichina, Elena Gooptu, Sudarshan |
| author_facet |
Ianchovichina, Elena Gooptu, Sudarshan |
| author_sort |
Ianchovichina, Elena |
| title |
Growth Diagnostics for a Resource-Rich Transition Economy : The Case of Mongolia |
| title_short |
Growth Diagnostics for a Resource-Rich Transition Economy : The Case of Mongolia |
| title_full |
Growth Diagnostics for a Resource-Rich Transition Economy : The Case of Mongolia |
| title_fullStr |
Growth Diagnostics for a Resource-Rich Transition Economy : The Case of Mongolia |
| title_full_unstemmed |
Growth Diagnostics for a Resource-Rich Transition Economy : The Case of Mongolia |
| title_sort |
growth diagnostics for a resource-rich transition economy : the case of mongolia |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2007/11/8691107/growth-diagnostics-resource-rich-transition-economy-case-mongolia http://hdl.handle.net/10986/7520 |
| _version_ |
1764402457994067968 |
| spelling |
okr-10986-75202021-04-23T14:02:34Z Growth Diagnostics for a Resource-Rich Transition Economy : The Case of Mongolia Ianchovichina, Elena Gooptu, Sudarshan ACCESS TO CAPITAL ACCESS TO INFORMATION ACCOUNTING AGRICULTURE AIR AIR POLLUTION AIR TRANSPORT ALLOCATION OF CREDIT BALANCE OF PAYMENTS BANK DEPOSIT BANK LOANS BANKING SECTOR BANKING SYSTEM BANKRUPTCY BANKRUPTCY LAWS BENCHMARKING BINDING CONSTRAINT BOND BOND MARKET BONDS BORDER CROSSING BOTTLENECKS BUDGET CONSTRAINT CAPITAL ACCOUNT CAPITAL FLOWS CAPITAL FORMATION CAPITAL MARKETS CAPITAL REQUIREMENT CAPITAL SHARE CAPITAL STOCK CAPITAL STOCKS CENTRAL BANK CLAIMANTS COLLATERAL COLLATERAL REQUIREMENTS COMMERCIAL BANK COMMERCIAL BANK ASSETS COMMERCIAL BANK LENDING COMMERCIAL BANK LOAN COMMERCIAL BANK LOANS COMMERCIAL BANKS COMMODITY PRICE COMMODITY PRICES CONFLICT OF INTEREST CONTRACT ENFORCEMENT COORDINATION FAILURE COORDINATION FAILURES CORPORATE GOVERNANCE COST OF TRANSPORT COUNTRY RISK COUPON COUPON RATE CREDIT INFORMATION CREDIT RISK CREDIT WORTHINESS CREDIT WORTHINESS RATINGS CREDITWORTHINESS DEBT DEBT LEVELS DEBT MATURITY DEBT RECOVERY DEPOSIT DEPOSIT INTEREST DEPOSITORS DEPOSITS DEVELOPING COUNTRIES DISPUTE RESOLUTION DOMESTIC CAPITAL DOMESTIC CREDIT DOMESTIC FINANCIAL MARKET ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICY ECONOMIC THEORY ECONOMIES OF SCALE ELASTICITY ENVIRONMENTAL DEGRADATION EQUIPMENT EXCESS LIQUIDITY EXPENDITURE EXPORT GROWTH EXPORT SHARE EXPORTERS EXPORTS EXTERNAL DEBT EXTERNAL FINANCE EXTERNALITIES EXTERNALITY FINANCIAL INSTITUTIONS FINANCIAL SYSTEM FISCAL POLICIES FLOATING EXCHANGE RATE FOREIGN COMPETITION FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN FUNDS FOREIGN INVESTMENT FOREIGN MARKETS FREIGHT FREIGHT MOVEMENT FUEL GDP GLOBAL ECONOMY GLOBAL TRADE GOVERNMENT POLICIES GOVERNMENT REVENUE GOVERNMENT SPENDING GROSS DOMESTIC PRODUCT HIGH TRANSPORT HUMAN CAPITAL IMMOVABLE ASSETS INCOME GROUPS INCOME TAX INFLATION INFLATION RATE INFLATIONARY PRESSURES INFORMATION TECHNOLOGY INSPECTION INSTRUMENT INSURANCE INSURANCE COMPANIES INTEREST RATE SPREAD INTEREST RATE SPREADS INTEREST RATES INTERNATIONAL AIR SERVICES INTERNATIONAL BANK INTERNATIONAL FINANCE INTERNATIONAL MARKETS INTERNATIONAL STANDARDS INTERNATIONAL TRADE INVENTORY INVESTMENT CLIMATE INVESTMENT PROJECTS JUDICIAL SYSTEM LABOR MARKET LACK OF TRANSPARENCY LAND OWNERSHIP LEGAL FRAMEWORKS LENDERS LENDING INTEREST RATES LIQUIDITY LIQUIDITY RATIO LIVING STANDARDS LOAN LOAN AGREEMENTS LOAN MATURITY LOANS TO INDIVIDUALS LOCAL FINANCE LONG-TERM DEBT MACRO-STABILITY MACROECONOMIC ENVIRONMENT MACROECONOMIC MANAGEMENT MACROECONOMIC MODELS MACROECONOMIC PERFORMANCE MACROECONOMIC POLICIES MACROECONOMIC STABILITY MARGINAL UTILITY MARKET FAILURES MARKET INFORMATION MARKET SHARES MATURITIES MATURITY STRUCTURE MICRO FINANCE MICROECONOMIC ANALYSES MIDDLE INCOME COUNTRIES MONETARY FUND MOTOR VEHICLES NATIONAL SAVINGS NATURAL DISASTERS OPEN ECONOMY PEAK PERIOD PENSION PENSION FUNDS PERSONAL INCOME POLICE POPULATION GROWTH PRIVATE CREDIT PRIVATE DEBT PRIVATE INVESTMENT PRODUCTION FUNCTION PRODUCTIVITY PROFIT MAXIMIZATION PROPERTY RIGHTS PURCHASING POWER RAIL RAIL LINK RAIL TRANSPORT RATE OF RETURN RATES OF RETURN REAL GDP REAL INTEREST REAL INTEREST RATE REMITTANCE REMITTANCES RESERVE RESERVES RETAIL TRADING RETURN RETURNS RISK MANAGEMENT RISK PREMIUM RISK PREMIUMS ROAD ROUTE SAFETY SAFETY NETS SERVICE RELIABILITY SHADOW PRICES SHORT-TERM DEBT SMALL BUSINESSES STOCK MARKET TAX TAX CODE TAX RATE TAX RATES TELECOMMUNICATIONS TRADE SECTOR TRAFFIC TRANSIT TRANSITION ECONOMY TRANSPARENCY TRANSPORT TRANSPORT COSTS TRANSPORT FACILITATION TRANSPORT NETWORK TRANSPORT SERVICES TRANSPORTATION TRANSPORTATION SERVICES WEALTH WORKING CAPITAL This paper uses a growth diagnostics approach à la Hausmann, Rodrik, and Velasco (HRV) to identify the most 'binding' constraints to private sector growth in Mongolia - a small, low-income, mineral-rich, transition economy. The approach of applying the HRV methodology is useful in those cases where a lack of data prevents us from estimating shadow prices to identify the most 'binding' constraint to growth. We find that although Mongolia is not liquidity constrained and has grown rapidly in recent years, economic growth has been narrowly based. Investment has flowed mainly into a small number of firms operating in mining and construction. The low level of private investment in sectors outside mining and construction has been due to low returns - a result of costly and unreliable transportation services; lengthy and complex transit procedures, including customs and trade rules; distortionary taxes; coordination failures, at both domestic and international levels; and growing corruption. Poor financial intermediation is also a problem that has kept the cost of finance high, although lower than in previous years. Alleviating these binding constraints will ensure that Mongolia maintains the path towards sustained, broad-based growth. 2012-06-08T15:15:11Z 2012-06-08T15:15:11Z 2007-11 http://documents.worldbank.org/curated/en/2007/11/8691107/growth-diagnostics-resource-rich-transition-economy-case-mongolia http://hdl.handle.net/10986/7520 English Policy Research Working Paper; No. 4396 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific Mongolia |