THE CONSTRUCTION INDUSTRY IN MINAS GERAIS STATE: OVERALL VIEW, MARKET CONCENTRATION DEGREE, BARRIERS TO ENTRY AND ECONOMIC PERFORMANCE
DOI:
https://doi.org/10.22456/2176-5456.8218Keywords:
Market concentration, Barriers to entry, Economic performanceAbstract
The present article aims to analyze some aspects of civil construction industrial structure in Minas Gerais state, investigating its market concentration degree and the competitive dynamics of the sector in recent period. It is assumed that knowledge on the sector industrial organization is important to the performance of already existing companies and potentially entering ones in the market, as well as to governmental intervention by means of public policies more suitable to local constructive activities reality. The study is based on the Structure-Conduct-Performance paradigm and uses McCloughan e Abounoori (2003) method to bring out the degree and evolution of market concentration of civil construction and its components during 1996-2005. The estimated results point out to high degree of concentration in Minas Gerais civil construction as well as gains in profitability in the analised time period.