This document analyzes economic trends in Mongolia from 2010-2019 using GDP, employment, and average wage data from the country's National Statistical Organization. It finds that while livestock and retail industries remain important, employment is shifting to construction, finance, and processing. Average wages have grown the most in construction, ICT, and processing industries, with mining wages being twice as high. The document also examines regional economic specialization through a location quotient analysis for 2009 and 2019, finding that specialization has remained steady in mining areas but declined elsewhere, such as in Darkhan. This decline may be partly due to internal migration driving urbanization toward Ulaanbaatar and a lack of developed regional supply chains.

1. TSEVELMAA KHYARGAS
EKHTUUL SHARAVDEMBEREL
NATIONAL UNIVERSITY OF MONGOLIA
Friday, 2 July 2021 14.00–17.00 (Phnom Penh/Bangkok Time (09.00–12.00 CET)
TCI/MOC Asia Conference 2021
Driving Forward on the Road to Recovery: Green, Social and Digital Challenges
A Two-Day Online Conference on Collaboration for Competitiveness in Asia
Cluster Sustainability in Mongolia

2. GDP of Mongolia, classified by economic activities, 2010-2019
23,7
16,5
11
10,7
5,3
4,9
4,6
4,3
4,1
3,8
2
2
1,9 1,7
1,2
1
0,5 0,5
0,4
GDP, Classified by economic activities, 2019
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Arts, entertainment and recreation
Water supply; sewerage, waste
management and remediation activities
Other service activities
Accomodation and food service activities
Administrative and support service
activities
Professional, scientific and technical
activities
Human health and social work activities
Electricity, gas, steam, air conditioning
supply
Financial and insurance activities
Construction
Information and communication
Education services
Public administration and defence;
compulsory social insurancy
Real estate activities
Transportation and storage
Manufacturing
Agriculture, forestry and fishing
Wholesale and retail trade; repair of
motor vehicles and motorcycles
Mining and quarrying

3. Agriculture, forestry and fishing
Mining and quarrying
Manufacturing
Construction
Wholesale and retail trade; repair of
motor vehicles and motorcycles
Transportation and storage
Financial and insurance activities
Real estate activities
Public administration and
defence; compulsory social
insurancy
Education services
Arts, entertainment and
recreation
-5
0
5
10
15
20
25
30
-0,05 0 0,05 0,1 0,15 0,2 0,25
GDP
composition
percent
2019
Change in CAGR, 2010-2019
industry average 928bln MNT
Industry Development in Mongolia, CAGR 2010-2019

4. Employment number in major industries,
2019
National Employment by Industries, 2019
0
5
10
15
20
25
30
Percentage
Industries
Total/National
1,146,161
Agriculture, forestry, fishing and hunting
290,160
Wholesale and retail trade; repair of
motor vehicles and motorcycles
160,405
Education services 96,108
Processing industries 90,378
Public administration and defence;
compulsory social insurancy
85,965
Construction 68,847
Transportation and storage 61,123
Mining and quarrying 57,923
Activities of households as employers
44,376
Accomodation and food service activities
36,280
Other service activities 24,547
Financial and insurance activities 24,257
Other activities 105,789

5. Dynamic Change in National Employment, 2009-2019

6. Agriculture,forestry, fishing
and hunting
Mining and quarrying
Manufacturing
Electricity, gas, steam and air
conditioning suplly
Water supply; sewerage,
waste management and
remediation activities
Construction
Wholesale and retail trade;
repair of motor vehicles and
motorcycles
Transportation and storage
Accomodation and food
service activities
Information and
communication
Financial and insurance
activities
Real estate activities
Professional, scientific and
technical activities
Administrative and support
service activities
Public administration and
defence; compulsory social
insurancy
Education
Health care and social
assistance
Arts, entertainment and
recreation
Other service activities
Activities of households as
employers
Activities of extraterritorial
organizations and bodies
-100,00
-50,00
0,00
50,00
100,00
150,00
200,00
250,00
-0,04 -0,02 0,00 0,02 0,04 0,06 0,08 0,10 0,12 0,14
%
difference
from
National
Average
CAGR Growth Rate (2014-2018)
Average wage growth of sectors
Average wage growth of sectors
Dynamic Change in Average Wages, 2014-2019 он

7. LQ in Central Region of Mongolia, 2009
Industries in Regions (in 2009) Orkhon Dornogobi Dundgobi Omnogobi Gobisumber Selenge Tuv Darkhan Specialization by industries
Agriculture, forestry, fishing and hunting
0.62 0.52 1.34 1.02 0.10 1.60 1.62 0.21 4
Mining and quarrying 5.52 1.98 0.59 1.88 6.75 2.61 0.28 1.25 6
Processing industries 1.50 0.56 0.63 0.54 0.83 0.86 0.73 1.29 2
Electricity, gas, steamand air conditioning
supply 2.44 0.61 0.51 2.97 3.86 0.84 0.37 1.55 4
Water supply; sewerage, waste management
and remediation activities 1.73 2.87 1.67 1.87 9.03 1.31 1.14 0.57 7
Construction 0.40 0.47 0.00 0.11 0.37 0.57 0.67 1.58 1
Wholesale and retail trade; repair of motor
vehicles and motorcycles 0.86 1.17 0.98 1.34 0.78 0.39 0.65 1.88 3
Transportation and storage 1.05 3.29 0.24 0.65 0.54 0.26 0.63 2.45 3
Accomodation and food service activities
0.61 1.51 0.00 0.70 0.00 0.55 0.27 1.29 2
Information and communication 1.12 0.00 0.62 0.52 0.00 0.51 0.00 0.72 1
Financial and insurance activities 1.56 0.99 0.81 1.81 3.00 0.44 0.76 0.31 3
Real estate activities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0
Professional, scientific and technical activities
0.00 1.64 0.97 1.00 1.68 0.74 0.28 0.69 3
Administrative and support service activities
0.92 0.00 0.00 1.82 0.00 0.00 0.00 1.94 2
Public administration and defence;
compulsory social insurancy 0.47 0.86 1.66 1.37 2.56 0.85 1.48 0.64 4
Education services 1.27 1.26 1.28 0.80 0.49 0.46 0.63 0.67 3
Activities of households as employers
0.84 0.32 1.47 0.46 2.52 1.03 1.02 1.14 4
Arts, entertainment and recreation 0.60 1.72 1.61 0.00 2.66 0.39 0.50 0.97 3
Other service activities 1.29 1.31 0.44 0.99 2.34 0.96 0.30 1.67 4
Activities of households as employers
0.00 0.00 0.00 0.00 0.00 1.26 0.00 0.00 1
Specialization of indutries in aimags (LQ>1) 9 9 6 9 9 4 4 10 60

8. Industries in Regions (in 2019) Orkhon Dornogobi Dundgobi Omnogobi Gobisumber Selenge Tuv Darkhan Specialization by industries
Agriculture, forestry, fishing and hunting
0.21 1.17 2.64 1.22 1.18 1.76 2.11 0.44 7
Mining and quarrying 3.88 0.89 0.43 2.93 3.09 0.61 0.18 0.53 3
Processing industries 1.58 0.82 0.27 0.34 0.55 0.47 0.93 0.07 1
Electricity, gas, steamand air conditioning
supply 0.70 1.06 1.66 1.49 2.03 0.23 1.42 0.22 5
Water supply; sewerage, waste management
and remediation activities 1.43 1.49 0.27 1.42 1.58 0.24 0.07 0.02 4
Construction 1.00 0.18 0.10 0.27 0.28 0.72 0.46 0.01 1
Wholesale and retail trade; repair of motor
vehicles and motorcycles 1.22 1.12 0.43 0.71 0.76 0.65 0.43 0.07 2
Transportation and storage 0.89 2.62 0.02 1.38 1.16 1.15 0.52 0.23 4
Accomodation and food service activities
0.91 0.74 0.08 1.08 0.47 0.63 0.37 0.04 1
Information and communication 0.68 0.00 0.04 0.02 0.19 0.94 0.00 0.05 0
Financial and insurance activities 0.44 0.52 1.42 1.02 1.03 0.51 0.23 0.01 3
Real estate activities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.14 0
Professional, scientific and technical activities
0.11 0.00 0.24 0.58 0.53 1.23 0.49 0.00 1
Administrative and support service activities
0.90 0.02 0.12 0.04 0.13 0.64 0.67 0.01 0
Public administration and defence;
compulsory social insurancy 0.90 0.61 0.66 0.90 1.09 1.07 1.03 0.01 3
Education services 1.57 0.59 0.70 0.94 0.98 1.01 0.82 0.08 2
Activities of households as employers
0.56 1.31 0.52 1.12 0.12 0.69 1.30 0.03 3
Arts, entertainment and recreation 0.60 1.49 1.24 0.56 0.00 0.70 0.53 0.00 2
Other service activities 1.39 1.29 0.23 1.09 2.02 0.37 0.15 0.01 4
Activities of households as employers
0.00 7.51 0.00 0.00 1.83 0.63 0.00 0.00 2
Specialization of indutries in aimags (LQ>1) 7 9 4 9 9 5 4 1 48
LQ in Central Region of Mongolia, 2019

9. Conclusions
- We have calculated CAGR of GDP production, Employment and Average wage of industries at the
National level using official data from National Statistical organization between 2010-2019.
- The livestock and retail industries, which make up the economy, still remaining, but the number of
employment in these industries are declining and slowly shifting to the Construction, Financial and
Insurance and Processing Industries.
- CAGR of average wage is higher in Construction, ICT, Processing Industries. Mining industry average
wage is twice higher then other industries, as well as CAGR of this sector.
- At the regional (aimag) level, economic specialization was measured by LQ based on the number of
employment in 2009-2019.
- Economic specialization stayed steady in mining based locations, but declined in other aimags. In
Darkhan, which used to be second biggest industrial city in Mongolia during the Soviet time,
economic specialization has declined dramatically over these years.
- Economic specialization decline can be explained by the internal migration drives urbanization to
Ulaanbaatar city and lack of proper developed supply chain activities in regional level.

10. Thank you for your attention and
cooperation!