The Mongolian government is establishing one Free Economic Zone (FEZ) and two
Free Trade Zones (FTZ) in order to provide free trade environment for foreigners &
domestics with more trade opportunities. It also promotes an export-oriented
industry and induces Foreign Direct Investment (FDI). Currently, the government is
making every efforts to induce FDI into the Zamyn-Uud Free Economic Zones and
two other Free Trade Zones.
This study analyzes the determinant factors of the foreign direct investment in
order to promote and expand the foreign firms’ entry into the Zamyn-Uud FEZ in
terms of priority. This study also aims to analyze empirically a way to attract
foreign direct investment more effectively. In this empirical analysis, survey
samples are limited to the foreign companies and FDI enterprises in Mongolia. Also
this analysis tries to show what are the FDI location factors in Zamyn-Uud FEZ and
examines its overall awareness, reactions, and interest of foreign companies.