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Evaluating Regional Policy in Yugoslavia, 1966–1990

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  • Evan Kraft

Abstract

This paper measures the redistribution of financial and physical resources to different regions is Yugoslavia that arise from tax exemptions, interest-rate subsidies, and price distortions. Despite, or perhaps because of the lower marginal productivity of capital in less-developed regions, the result of policies adopted between 1966 and 1990 has been a substantial net flow to these regions. To equalize the marginal product of capital across regions in 1972, a one-time transfer of 45% of the capital stock from the less-developed regions would have been required. Yet the appropriate regional policy to realize this objective was not fully adopted by Yugoslav leaders.

Suggested Citation

  • Evan Kraft, 1992. "Evaluating Regional Policy in Yugoslavia, 1966–1990," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 34(3-4), pages 11-33, December.
    • Handle: RePEc:pal:compes:v:34:y:1992:i:3:p:11-33
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    Cited by:

    1. Leonard Kukić, 2020. "Origins of regional divergence: economic growth in socialist Yugoslavia," Economic History Review, Economic History Society, vol. 73(4), pages 1097-1127, November.

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