2013 Theses Master's

Quantitative Analysis of the Relationship Between Mining and Livestock Sectors in Mongolia

Gankhuyag, Uyanga

Discoveries and exploitation of mineral resources can increase economic growth and generate employment in developing countries. However, while the benefits of non-renewable resource extraction accrue mostly to owners of capital, the negative externalities on the environment can be disproportionately borne by people living in rural areas, such as nomadic pastoralists in Mongolia. This research uses panel data by soums (counties) in Mongolia to analyse the relationship between mining and livestock sectors. The study finds evidence that increase in mining is associated with higher mortality of livestock, indicating negative environmental externalities. More mining is also associated with more sales, or consumption of livestock, pointing to the positive effect of improved markets for herders.