Insight into the Hungarian Automotive Industry in International Comparison

János Rechnitzer (), Róbert Hausmann () and Tamás Tóth ()
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János Rechnitzer: Head of the Department of Regional Studies and Public Policy at the Széchenyi István University
Róbert Hausmann: Magyar Nemzeti Bank (Central Bank of Hungary)
Tamás Tóth: Magyar Nemzeti Bank (Central Bank of Hungary)

Financial and Economic Review, 2017, vol. 16, issue 1, 119–142

Abstract: The paper examines the features of the Hungarian automotive industry1 in international comparison, in the form of a descriptive analysis. The comparison focuses primarily on the automotive industry of the Visegrád region, Germany and Austria, as well as on processes in the EU. The analysis reviews the academic background of the sector, and then provides an insight into the history of the automotive industry of the Visegrád region, focusing on the socialist past of the automotive industry and the consequences thereof. In the last part of the analysis, we compare contemporary Hungarian industry trends with the features of it in the Visegrád countries and Europe, based on the statistics of Eurostat, by company size and ownership structure, as well as on the corporate income tax return database of the Hungarian tax authority (NAV). The main conclusion of the paper is that the automotive industry shows outstanding productivity within the Hungarian national economy, but on the other hand, the SMEs of the sector are less productive than large enterprises and this difference is the highest in Hungary within the region. In order to change the situation, large foreign enterprises should outsource their higher value added activity in the region and raise wages accordingly, and on the other hand, it would be necessary to strengthen and advance Hungarianowned SMEs within the value chain.

Keywords: competitiveness; labour productivity; V4 region (search for similar items in EconPapers)
JEL-codes: D41 L61 O31 P23 R11 (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:mnb:finrev:v:16:y:2017:i:1:p:119-142

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