Impact Of China's "One Belt One Road" Initiative On Mongolia's Transportation And Trade Industry

In a globalized economy,efficient logistics and low transport costs are a significant determinant of a country's competitiveness.Indeed,transport and logistics have a number of direct and indirect links with important economic and social development goals.Reducing the cost and improving the quality of logistics and transport systems creates an integrated and efficient transport network,which improves international market access and leads directly to increased trade.Increasing trade leads to better jobs,higher incomes and poverty reduction,specifically an increase in the per capita real income of a country'.Indeed,transport and logistics have direct and indirect links with socioeconomic development.Mongolia is too dependent on its vast mineral resources,which are mostly non-renewable resources.This prompts us to seek proper use and appropriate measures such as environmental protection and to advance value-added products on world markets with optimum prices as a priority.The development of these transportation and logistics systems would solve a lot of Mongolian socioeconomic issues.An integrated and connected transportation system that extends to all comers of Mongolia,and international open border ports will be the foundation for the development of mineral resources,transportation,logistics,agriculture and other industries.This study aims to analyze to review the current status of Mongolia's trade costs and the current status of Mongolian transportation sector.Therefore,this paper focuses on discussing:First,to study economic and political relations of China and Mongolia.Second,to study about Chinese "One belt One road" initiative and China-Mongolia-Russia economic corridor,also to study Mongolian transportation sector and trade pattern.In particular,I aim at examining the factors that increase the transport cost between Mongolia and its trade partner countries.This analysis employed a gravity model to estimate the impact on trade volume.In addition,chapter 4 gives information on data collection,and estimations of the impacts on transport costs using regression functions and the gravity model and described.Finally,chapter 5 concludes the thesis and gives some policy recommendations.There are 15 tables,18 figures and 50 references in this dissertation.