The Impact of the Exchange Rate Movement on Mongolian Import.pdf

1、This study explores an empirical analysis of the effect of the exchange rate on Mongolian import rate. I used the import demand function combine
　　with the gravity equation model to determine if the transportation cos

2、t impacts on the level of Mongolian import. This gravity model is used to estimate the relationship between exchange rate, income, distance, and import for Mongolia and its seven major exporting countries, i

3、ncluding bordered countries: China and Russia, as well as USA, United Kingdom, Japan, South Korea and Germany; using quarterly cross-country panel data for the period from 1999 to 2012. This study supposes that the

4、foreign currency exchange rate movement has had either positive or negative impact on the Mongolian imports. Also the study examines the effect on Mongolian income growth, foreign countries GDP, and the impact of distanc

5、e between two countries on the Mongolian import demand.
　　According to the estimates of the gravity equation for processing imports,the estimated coefficient of Mongolia’s GDP is and statistically significant at 1％;th

6、e estimated coefficient of the trading partners’GDP is and alsosignificant at 1%.The estimated coefficient of Dummy,common land border,is 1.903594,positive and significant at 5%.But the estimated distance between two co

7、untries and exchange rate elasticity of imports are 0.447 and 0.185 butnot statistically significant.We found GDP growth can improve the import
　　rate in Mongolia,however,no evidence of exchange rate impact on import.