Analysis Of The Impact Of Overseas Political Uncertainty On Mongolia's Attracting Foreign Direct Investment

Since the economic transformation of Mongolia in 1991,foreign direct investment has played a vital role in the development of its own economy.Mongolia participates in its own unique mineral natural resource advantages and attracts many foreign direct investments.These investments are mainly related to the mining industry,which is highly relevant to Mongolia 's political environment.This paper analyzes the impact of Mongolia's attraction of foreign direct investment through research on national elections.As a result,the political uncertainty of various countries is rising,and the scale of foreign direct investment in Mongolia.Therefore,studying how overseas political uncertainty affects Mongolia 's foreign direct investment has both theoretical and practical significance.To investigate the impact of overseas political uncertainty on Mongolia 's attraction of foreign direct investment,this article selects the" timing of overseas elections as political uncertainty.The research question is set up in two aspects,one is how elections create political uncertainty;the other is how overseas political uncertainty affects Mongolia's ability to attract foreign direct investment.Relevant research and analysis are conducted on the two key factors of political risk and political uncertainty in the investing country.This paper selects 23 countries for foreign direct investment in Mongolia from 2011 to 2018 as the research sample,and conducts relevant empirical analysis based on the relevant data of foreign direct investment and 767 election data of these 23 countries.The empirical results of this paper show that FDI has decreased significantly overseas,especially in the season before the election or during the overseas elections.However,after the elections,once the election results come out,FDI tends to recover or increase.This result shows that when the elections create policy uncertainty,and political uncertainty increases,investors will wait and see until the uncertainty is resolved.