 The Impact of EU Subsidies on the Performance of Hungarian CorporationsPéter Bucsky
Chapter Chapter 6 in The Path of Hungary's EU Membership, 2025, pp 139-168 from Palgrave Macmillan Abstract: Abstract Over the past two decades, EU funding has emerged as one of the most significant sources of support for the Hungarian economy. Since 2004, Hungarian beneficiaries have received more than €47 billion in EU Structural and Investment Funds. However, little is known about how these funds have influenced the performance of recipient companies. This chapter demonstrates that the effectiveness of these grants has been limited. Between 2008 and 2021, only three years—most recently in 2013—recorded faster revenue growth for companies receiving EU funds compared to those that did not. Moreover, the growth trajectories of beneficiary companies declined, falling behind the industry average. While EU grants appear to have increased the pre-tax profits of these companies, their profit margins have consistently remained below the national average. Overall, the data suggest that companies with below-average performance were the primary recipients of EU subsidies, which helped to boost revenues but did little to enhance efficiency and competitiveness. Date: 2025 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:stuchp:978-3-031-94009-5_6 Ordering information: This item can be ordered from DOI: 10.1007/978-3-031-94009-5_6 Access Statistics for this chapter More chapters in Studies in Economic Transition from Palgrave Macmillan |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.