Abstract
This study outlines the theoretical and political bases of Austrian policy and relates the policy to observed declines in regional inequalities between 1957 and 1971. An investigation of policy impact is carried out with the use of simultaneous equations and path analysis. A major conclusion of the analysis is that policy has aided in the achievement of planning goals but that the role of free market processes has probably been more important. This suggests that future planning activities should be carried out with recognition of the implications of adverse market developments on regional growth. Planning strategies need to be devised which assure the advances made to date and which offer viable alternatives for further advancement in Austria's lagging regions.