Characteristics of Industry Structure and Problems with the Bidding and Contracting System in Japan’s Rural Construction Industry

抄録

This study analyzes the characteristics of Japan’s industry structure for rural construction and exposes problems with the current bidding and contracting system for public works projects. Analysis of financial data from 266 construction companies and questionnaire responses from 52 companies in Fukushima Prefecture shows that the comprehensive evaluation method of the current bidding and contracting system does not function adequately and opportunities exist for market oligopoly. Moreover, the study finds that Japan’s rural construction industry has a high degree of information sharing, resulting from a complex, layered subcontracting structure. These results indicate the need for a detailed analysis of industry structure when designing systems for rural construction industry regulation.