This paper investigated export potential of Mongolia using the augmented gravity models and pooled time series and cross section data of 27 main trading partner countries based on data from 1993 to 2010. The estimated coefficients from the gravity models are then used to predict Mongolia’s export potential. Before estimating export potential study has determined Mongolian trade dependence index and export concentration. So we calculated export potential by including export concentration. From the estimation with Mongolian export to China, Singapore, Mexico, Uzbekistan, Poland Turkey had already reached export potential. But rest of the 21 countries Mongolia hasn’t reached its export potential. And also this study is crucial and will play a contributory role for the policy makers in particular and for the economies of Mongolia and its trading partners in general.
