Study on the Impact of a Free Trade Agreement between Mongolia and the Eurasian Economic Union

Abstract

This study aims to undertake a detailed quantitative analysis on the formation of a free trade agreement between Mongolia and the Eurasian Economic Union (EAEU). Mongolia has recently concluded an economic partnership agreement with Japan; however, the country further seeks to align with integration in other regions in order to accelerate its economic and social development. Therefore, this research work concentrates on the next possible regional integration, namely with the EAEU. In doing so, we utilize the Computable General Equilibrium (CGE) model and the latest GTAP database, 9.0, provided by Purdue University. Assuming a hypothetical scenario of full liberalization, the macroeconomic and trade effects were investigated.