The relationship among exports, imports and economic development: Evidence from Mongolia

For developing countries foreign trade may play major roles in economic development. The focus of economic development should be on supporting innovation, increasing prosperity and technology in the country. Therefore, the importance of import and export efficiency in economic development is a key issue and could be leading factors to economic development. The economic development effect of external trade after transforming to market economy and increasing trade access to Mongolia market is an important empirical question which is worthy of investigation. Hence, this paper examines the interactions among economic development, exports and imports for Mongolia in the period 1982-2010.