The Economic Policy and Competitiveness Research Center (EPCRC) is pleased to present the findings of the study on “Mongolia: Impacts of international air service liberalization.” EPCRC was established to promote the concept of competitiveness to the general public and contribute to Mongolia’s economic growth by examining the bottlenecks that hinder the country’s competitiveness. Every year, the center conducts in-depth studies on one or two crucial factors affecting the economy, such as the effectiveness of government regulation and the role of the private sector.
For 2011, EPCRC selected the air service industry as it supports the growth of tourism, trade, business travel to and from Mongolia, and wider economic growth. We partnered with Inter VISTAS, an international firm with expertise in air transport, with the assistance from US Agency for International Development.
The aim of the study was to assess the current status of the Mongolian aviation industry, air traffic levels and wider economy and examine how air liberalization in Mongolia will impact:
- Passenger traffic volumes and air fares
- Air cargo traffic
- Job creation in the air transport industry and the wider economy
- Economic growth
In addition, this research also provides recommendations on the approach to liberalization and the potential regulatory and infrastructure implications. It is crucial that government recognizes the importance of improving its policies to promote private sector competitiveness, in order to succeed amidst international competition in our globalized world.
We hope that readers find our study timely and of importance to the country’s social and economic growth.