This study investigates the economic impact of developing economic corridors in Mongolia, a landlocked country struggling with severe economic challenges, including elevated distribution costs, increasing import prices, and volatile export revenues driven by fluctuating mineral prices. Using the Institute of Developing Economies-Geographical Simulation Model (IDE-GSM), a computable general equilibrium model grounded in spatial economics, we assess the potential impacts of enhancing Mongolia’s road and rail infrastructure, alongside the combined effects of service liberalization and the reduction of nontariff barriers. The results highlight the critical role of regional cooperation, sustainable financing strategies, and bold policy reforms in strengthening Mongolia’s trade and connectivity.