China's Impact on Mongolian Economy

In recent years, Mongolian and Chinese relationship is becoming stronger. China is the biggest trading partner that it takes 84% of total Mongolian export and the largest country that invests in our mining sector, which is the main export, is China. Tourists from China are also growing and around 60% of all tourists in Mongolia are from Mainland China. All these data show the necessity to study China's impact on Mongolian economy. We aimed to find the impact through channels such as inflation, gross domestic products and exports. Our results suggest that as Chinese inflation rate increases Mongolian inflation increases in the same direction, China's GDP growth and commodity price index growth has positive impact on Mongolian's GDP growth, China's domestic investments has impact in Mongolian imports with lags, and commodity prices and China's domestic investments granger cause Mongolian exports