 An FDI-based development model for Hungary - new challenges?Miklos Szanyi ()
No 141, IWE Working Papers from Institute for World Economics - Centre for Economic and Regional Studies Abstract: Hungary has taken an FDI-oriented development path during its transition process. The economy has become highly internationalized and largely controlled by foreign-owned firms, which have contributed much by modernizing production, reorienting markets and transferring expertise. However, the initial surge of development seems to be ending, at least in the form it took in the 1990s. Signs of saturation are visible, and the question now is how to open a new chapter of FDIoriented development. Investment and operation will have to shift towards more sophisticated activities. To effect such changes, Hungary must offer enough qualified labour and an adequate infrastructure. Moreover the investment incentive system needs overhauling, as entry into the EU will outdate otherwise efficient incentives. Efforts must go into organizing the economy according to the National Development Plan, as a backbone for the EU assistance available. Keywords: Hungary; FDI; development; foreign-owned firms; labour force; infrastructure; EU accession (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:iwe:workpr:141 Access Statistics for this paper More papers in IWE Working Papers from Institute for World Economics - Centre for Economic and Regional Studies Contact information at EDIRC. |
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