AUTHOR: Batjargal Nadmid, Ankhbayar Chuluunbaatar, Bolormaa Budjav
PUBLISHED IN: Volume 6 Issue 2
KEYWORDS: LDI, LISA, spatial model, Moran’s I
ABSTRACT
The concept of local development in Mongolia has gained prominence in recent years, driven largely by the government’s new efforts to strengthen provincial financial selfgovernance. Although the revised Budget Law was enacted in 2011 sought to enhance local revenue generation, Mongolia’s unique characteristics, its sparse population, vast territory and harsh climatic conditions continue to pose significant barriers to achieving balanced development across 21 provinces. This study examines whether the determinants of Local Development Index exhibit spatial correlation across provinces, using panel data from 2016 to 2024. Three alternative spatial model specifications are employed to identify the most appropriate model for analyzing spatial correlation. The results reveal the presence of significant unobserved factors that contribute to spatial dependence on provincial development outcomes. These findings underscore the critical role of unobserved structural and spatial characteristics in shaping provincial disparities in Mongolia.
DOI: https://doi.org/10.65194/IJBI-2026-1009
