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Contemporary Trends in Pricing of Industrial and Farm Products in the USSR and their Impact on Effectiveness of Production

In: The Balance between Industry and Agriculture in Economic Development

Author

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  • V. I. Kiselev

    (USSR Academy of Sciences)

Abstract

The pricing policy for industrial and farm products in the USSR has exercised a substantial influence on rates of development and proportions of sectors of the agro-industrial complex (AIC) though its role is much less than in market economies. It is well known that in the USSR the basic proportions and directions of development are determined by the Plan and that prices act as the most important element of the mechanism for its fulfilment, determining to a considerable extent the level of production. Indeed the role of prices is now somewhat more important, and with the current development in markets the control functions of prices will become even more important. Nevertheless pricing problems need to be examined within the context of the whole mechanism of the centralised management of the economy, taking into account that prices determine the choice of economic decisions in combination with planning and accounting levers. To achieve a true understanding of the role and place of price-ratio problems in the economics of the AIC it is necessary to examine the basic conditions determining the character of the AIC development and its specific problems.

Suggested Citation

  • V. I. Kiselev, 1989. "Contemporary Trends in Pricing of Industrial and Farm Products in the USSR and their Impact on Effectiveness of Production," International Economic Association Series, in: Nurul Islam (ed.), The Balance between Industry and Agriculture in Economic Development, chapter 4, pages 73-85, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-10277-8_4
    DOI: 10.1007/978-1-349-10277-8_4
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