Evaluation of effective competition of China's coal industry based on Principal Component Analysis method

The effective competition situation of China's coal industry matters much on its healthy and sustainable development and even on China's national economy.Based on the structure-conduct-performance paradigm,this paper sets up an evaluation index system to evaluate the effective competition situation of China's coal industry from 2000to 2009by using the Principal Component Analysis method.The analysis shows that the effective competition of China's coal industry has been improving continually and competitive dynamics is the most important factor to determine the effective competition situation.In order to improve effective competition,China need to push integration,optimize enterprise scale and enhance capacity utilization rate of coal industry.