ABSTRACT
This chapter interprets government involvement in industrial location in three ways. First, we note the ways in which national governments establish the fundamental conditions for the operation of market and non-market relationships, including property rights, labor regulation, and interest rates. Second, we make brief mention of industrial activity that is owned or at least directly influenced by national and local governments even in mixed economies: public services and defense-related operations. The bulk of the chapter is devoted to national and sub-national governmental attempts to influence the location of private investment, under the rubric of regional policy and urban policy.
