Research on the Competitiveness of Mongolian Coal Industry

Abstract

This research is aimed to determine factors impacting competitiveness of Mongolian coal sector and develop possible ways to increase competitiveness of Mongolian coal on International market. Based on literature review we choose following methods of analysis: 1) Revealed comparative advantage for determining level of competitiveness of Mongolian coal sector; 2) panel regression for determining factors impacting competitiveness of coal sector; 3) documental analysis for developing possible opportunities of increasing competitiveness of Mongolian coal sector. Revealed comparative advantage shown that Mongolia is failing to benefit from International coal market. Mongolia ranked only at 22th place, despite having huge amounts of coal reserves. Rca analysis also shown that countries with lower economic development usually tend to have lower Rca values compared with high developed ones. Regression analysis shown that GDP supports to coal sector by transition of national income to profitable sectors. countries with sea gateway can benefit in competition by lower transportation costs. Logistics and infrastructure support countries to achieve benefit from enhanced transportation and logistics network. We used Porter's Diamond Model to interpret and analyze each of 6 factors, that may have impact to Mongolian coal sector competitiveness. these include: firm strategy, factor conditions, demand conditions, related and supporting industries, government, chance. From these factors, we found that infrastructure has highest impact on Mongolian coal sector. Based on infrastructure, we developed possible ways of cost efficient transportation and strategical planning of coal reserves