ABSTRACT
This chapter explores the investment decision in its spatial context, and actively to seek relationships between regional investment, technological change, and the distribution of income between profits and wages. It briefly reviews some of the basic determinants of investment as suggested by various theoretical perspectives, both spatial and nonspatial. The chapter discusses the articulation of a simple operational model of regional investment which is subjected to empirical verification. It examines the impact of regional wage rates on investment and technological change, as well as considering the impact of growth rates and technology on the intra-regional distribution of income. The chapter highlights the role of three major factors in the determination of local rates of capital accumulation: the social and economic conditions for local production, the supply of available savings with which to finance investment expenditure, and the pre-existing stock of local or regional capital. It concludes with a consideration of capital's relationship to labor in regional production.
