THE POLITICAL INSTITUTION IN MONGOLIA AND SUSTAINABILITY OF ECONOMIC GROWTH: An Interrupted Time Series Analysis
Abstract
During the last three decades, there have been several cases of faster economic
growth and sharp economic decline in Mongolia. It shows that it is very worth to study and identify
what factors causes the unsustainability of economic growth in post-communist countries. In this study,
we relied on two competing accepted hypotheses on economic development that reject each other. We
combined them as a convergent knowledge to study our research problem and find holistic answer to
our research question. We use secondary source of data to test our hypotheses. We employed
interrupted time-series design of quasi-experiment study to analyze the data and interpret the meanings
of data analysis. One finding of this study shows that reforms towards inclusive economy causes higher
sustainability of economic growth. Another finding shows that a coalition government of dominant
parties changes economic institutions towards more extractive one and causes sharp economic decline
when there is lower knowledge of managing economic policy effectively.
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