"Mongolian Aviation Ready for Takeoff: A Case Within Post-Socialist Transition and Growing Foreign Direct Investment"

Anudari Batjargal

The aviation industry in Mongolia has been rapidly growing since 2205, with two start-up air carriers now competing cut-throat in the domestic market. In the same time period, significant growth can be seen in foreign direct investment (FDI) into Mongolia. This thesis investigated the relationship between these two growths and revealed that, in fact, there is a relationship between aviation and FDI in Mongolia, and this influx of FDI could continue to benefit the aviation industry. This conclusion was based on the results from statistical tests comparing foreign direct investment to international and domestic passengers and load factor at a 95% confidence level. Analyses conducted here also revealed this relationship is unique to Mongolia. The same tests completed for four other transition economies, Cambodia, Hungary, Kazakhstan, and Poland, did not reveal as consistent a relationship between aviation and FDI as that for Mongolia.