Foreign Direct Investment in the Mongolian Mining Sector

Abstract

Attraction to foreign investment in Mongolia's economy has become a key factor in Mongolia's development. Mongolia has a small population, especially in comparison to some other " tiger " economies. There is a large population emerging into a wealthier class, which is expected to increase consumption. Mongolia is geographically the 19th largest country in the world and has many natural resources. This paper diagnoses the Mongolian mining sector and identifies its problems, constraints, growth, and increased contributions to the national economy. The paper also addresses FDI trends in the mining sector in Mongolia in comparison to FDI in mining in developing countries and their processes, advantages, and government policies.