A Territorial Model of Productive Forces

The author formulates conditions required for a territorial model of productive forces that is constructed out of regional units rather than the sectoral units of the national economy. The regional units themselves are delimited in the process of optimization of the regional structure of the national economy. The over-all model is constructed out of a system of four preliminary models. They are: a territorial model of a single-product industry, a model of transport flows, a model of a regional unit and a model of the division of labor among regional units. The author examines interactions between the models and the criteria of optimality of each of the four models as well as other formally stated assumptions.