• ISSN: 2301-3567
    • Frequency: Quarterly (2013-2014); Monthly (Since 2015)
    • DOI: 10.18178/JOEBM
    • Editor-in-Chief: Prof. Eunjin Hwang
    • Executive Editor: Ms. Chloe Wu
    • Abstracting/ Indexing: Engineering & Technology Library,  Electronic Journals Library, Ulrich's Periodicals Directory, MESLibrary, Google Scholar, Crossref, and ProQuest.
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JOEBM 2015 Vol.3(8): 812-819 ISSN: 2301-3567
DOI: 10.7763/JOEBM.2015.V3.291

The Wolf Economy and Natural Resource Trap

D. Tuvshinjargal and P. Avralt-Od
Abstract—Mongolia is one of the richest countries in the world in terms of mineral endowments, and its medium and long-term outlook of the growth seem favorable. Even though mining sector development is likely to create opportunities for high economic growth in Mongolia, there have been several issues that need to be taken into consideration such as the impact of Dutch disease and the resource curse. According to the political risk index by the ICRG, the level of the Mongolian institutional quality is closer to the countries recognized as struggling with the curse of natural resources, which indicates that there is high potential for the rent seekers or corruption activities are likely to increase. Therefore, it is anticipated that the mining boom is having a negative impact on the Mongolian economy in line with resource curse theory. In other words, unless the government takes measures to improve governance and strengthen institutions in the country including implementing an effective anticorruption framework, the Mongolian economy is expected to be trapped in a resource curse, instead of being blessed with its new mineral wealth.

Index Terms—Mongolia, resources curse, institutions, wolf economy.

The authors are with the Institute of Finance and Economics, Ulaanbaatar, 13381 Mongolia (e-mail: tuvshinjargal.d@ife.edu.mn, avraltod@email.arizona.edu).

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Cite: D. Tuvshinjargal and P. Avralt-Od, "The Wolf Economy and Natural Resource Trap," Journal of Economics, Business and Management vol. 3, no. 8, pp. 812-819, 2015.

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