We would like to introduce excellent research papers written by our alumni or current students in this section. Now we are posting a paper on financial development and economic growth in Mongolia by Tsolmon Altantulkhuur (2012, Bank of Mongolia, Economist) in this issue.

In the last two decades, Mongolia has been in a time of transition from a centrally planned economic system to a liberalized economic system, and it is becoming one of the fastest growing economies in the world. Professor Joohoon Kim, an advisor of Tsolmon explains that this paper investigates whether financial sector development leads to economic growth or vice versa using evidence from Mongolia. In the case of Korea, economic growth preceded financial sector development, which was centrally planned by the government. After its dramatic economic growth, the financial sector was liberalized and has grown rapidly. However, the Mongolian financial sector, especially the banking sector, is the fastest growing industry, and it is followed by economic growth. This paper supports this macroeconomic policy.

According to the paper, the empirical analysis shows that Mongolian economic growth strongly follows the financial sector development and the current policy to stimulate financial sector development is highly recommended.

-Subject: Financial Development and Economic growth: The Case of Mongolia
-Written by: Tsolmon Altantulkhuur (2012,  Bank of Mongolia, Economist)
-Advisor: Joohoon Kim
*click here to see the paper