Financial Aspects of Regional Economic Policy Debates

Abstract

The actual resources allocated to individual territorial units and the manner in which resource allocation decisions are indirectly influenced by Soviet pricing policy are crucial elements in spatial planning. As a prelude to an analysis of the political economy of the East-West debate, a discussion of the broad implications of two factors of central concern to territorial development — the budgetary procedure and the indirect effect of price calculations — especially in relation to turnover taxes, rent and transportation — on industrial location decision-making is necessary. In concert, these two factors provide an introduction to the ‘macro’ and ‘micro’ levels of analysis of financial aspects of spatial resource allocation.