A Study On The Excessive Competition Of The Coal Industry In China

Excessive competition, troubling Chinese economic development continually, derives from either competition itself or some certain institutional causes. Excessive competition arises in many industries during the course of market-oriented economy transition, and coal industry is one of the most typical. The excessive competition in coal industry causes production ability to be lay idle, coal resources to be destroyed, the allocation of social resources to remain inefficient, heavy loss in coal industry and band market order. Furthermore, excessive competition in coal industry causes bad influences to its structure upgrading, technology progress in other industries, constant evolution of industry structure and sustainable development in China. This paper discusses the current situation and causes of the excessive competition in coal industry, And aims to find some workably competitive industrial organization suitable for coal industrial development in our country. At the same time, it tries to elaborate how to realize rationalization of the forms in the industry. Lastly, It offers some normative suggestions on how to realize workable competition in coal industry in China.The paper is made of two parts, introduction and main body. The introduction describes the subject and its background of this paper, pointing out the significance of the study on excessive competition in coal industry, with the background of globalization and economic transition. Then the introduction part sketches out the major contents and significance of the paper.The main body of the paper includes five chapters. The first chapter explicates the economics implication and bad effects of excessive competition, using the industrial organization theory home and broad concerning excessive competition. Based on the explication above, the paper offers some suggestions on the path of realization of workable competition of the coal industry and the designing frame work of industrial organization policy. The second chapter describes the development of coal industry, which can be divided into three subsection, including the significance, the production ability and the developing dilemma of the coal industry. The third chapter does some empirical study to elaborate excessive competition and the consequent market performance in coal industry, using a series of indexes such as market concentration rate, the firm scale, utilization ratio of production ability and industrial profit ratio etc. The fourth chapter elaborates the causes of excessive competition in the coal industry, including administrative regulation, supply and demand, barriers, market conducts etc. The fifth chapter proposes to improve the competition situation and realize workably competitive market structure, then elaborates the condition sand concerning policy suggestions of it.