Analyses of Factors Effecting the Investment of Mongolia
Investment is a change of house, building, production tools and equipment required for the country's and regional
production, and foreign investment is very important in Mongolia's economy.
Purpose: We would like to present and share about the current state of investment in Mongolia, Investment supports GDP
growth, private investment is more effective than public investment, its effecting investment of Mongolia and analysis of the
state budget and private sector investments and their economic benefits.
Percentage of private investment in GDP were in average 18% from 2007 to 2016 and 19.6% in 2009. The share of public
investment in GDP was in average 12% (2007-2016).
On sources of investment, since 2007 and up to now, the percentage of bank loans and investment from own resources, have
declined, while FDI and state budget c investment have risen dramatically. Partial correlation analysis shows that 22% of GDP
is generated by investment. From which private investment account for 14% and public investment is about 8%.
For our country, tax revenues have a negative impact on total investment. We need way to protect investment from exchange
rate risks is to make the budget investment on the appropriate correct time and select the more important ranked projects for
investing from state budget investment.
Keywords: GDP, Incremental Capital-Output Ratio, Investment, Money supply, state budget investment