The Foreign Direct Investment Job Multiplier During a Resource Boom: Evidence from Mongolia

Publication | December 2021

This paper explores the job creation impacts of the large foreign direct investment (FDI) inflows to Mongolia’s non-resource sector following the signing of the investment agreement for the Oyu Tolgoi mine in 2009.

Resource booms can lead to impressive growth rates in resource-rich developing countries. The paper examines the link between resource booms triggered by new resource projects and FDI inflows into the non-resource sector on one hand, and FDI and job creation on the other. Its analysis focuses on the non-resource sector, where the positive economic effects of FDI are more pronounced than in the extractive sector.

Contents 

  • Introduction
  • Resource Booms, Non-resource Foreign Direct Investment, and Local Job Multipliers
  • Oyu Tolgoi Context
  • The Foreign Direct Investment Local Job Multiplier
  • Conclusions
  • Appendix

Additional Details

Type
Series
Subjects
  • Economics
  • Industry and trade
Countries
  • Mongolia
Pages
  • 26
Dimensions
  • 8.5 x 11
SKU
  • WPS210454-2
ISSN
  • 2313-6537 (print)
  • 2313-6545 (electronic)

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