Foreign Direct Investment ( Fdi ) Essays

832 Words Mar 12th, 2015 4 Pages
One of the key parts of economic globalization is Foreign Direct Investment (FDI). According to Todaro and Smith, who are economic development professors at New York University and the George Washington University, the growth of private FDI in the developing world has been extremely rapid - though it has came in waves - in recent decades (Todaro & Smith, p685). This paper explores what has been happening with regards to FDI in Mongolia since 2005. It analysis a recent trend in FDI in Mongolia and its causes of change. Also it investigates who gained and lost from the change in the FDI and private sectors during the last decade.
Mongolia is a landlocked country in central Asia, bordered by Russia and China, with land area of about 1.6 million sq. km. and a population of about 3 million, which makes the country the least densely populated nation in the world (World Bank, 2013). After the collapse of Soviet Union in the late 1980s, Mongolia started democratic reforms, and the democratic revolution introduced a multiparty system and limited presidential power. In 2013, Mongolia’s per capita income was $3,770 in current USD (World Development Indicators, 2013), which makes Mongolia a Middle Income Country (MIC) according to World Bank Country Classification. Mongolian Human Development Index (HDI) value for 2013 was 0.698 and it is ranked at 103th out of 187 countries. The country’s HDI value increased from 0.515 to 0.698 between 1980 and 2013 (UNDP, 2014). Other statistics…

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