The aim of this paper is to clear the role of public works contractors which have developed through the period of higher economic growth, in the mountaneous region, Totsukawa and Oto mura, Nara prefecture.
The results obtained are as follows;
1. The public enterprise contractors in this area has developed under the policy of the regional development of mountaneous region where the retreat of population to large towns have advanced through the period of the higher economic growth 1960-1975.
2. The main inputs by this policy were the construction of forest land paths, bridges, tunnels and various public buildings. So many public works contractors have developed and holded the first place in the productions of this area, contrasting to the decrease of forest productions under the impact of increased imported timber.
3. In this process, while Totsukawa mura, where is large square composed of mountaneous district and have many points of landslide, have rapidly increased the demand of public works, Oto mura of which square is smaller than the former have slowly increased it. So, the former have created many and various scale contractors and the latter have created some and small ones. Thus the inputs have been almost digested in Totsukawa mura, but most of it have outflowed to the other in Oto mura.
4. Many farmers who have small paddy fields, ordinary fields and forest land have been employed to these contractors temporarily as a side job. They have almost employed through the relations of community. The opportunity of employ in Totsukawa mura is larger than Oto mura. So, the public enterprises have formed stable situation of economic base in the former, but it has been unstable in the latter, so the retreat of population is admitted in the latter.