EconPapers    
Economics at your fingertips  
 

Outward FDI from Hungary: the Emergence of Hungarian Multinationals

Magdolna Sass, Andrea Éltetõ and Katalin Antalóczy
Additional contact information
Andrea Éltetõ: Hungarian Academy of Sciences
Katalin Antalóczy: Budapest Business School

Entrepreneurial Business and Economics Review, 2014, vol. 2, issue 3, 47-61

Abstract: Hungary is a leading outward foreign investor among the new member states of the European Union. Our research question is what those factors are which enabled Hungarian companies to expand abroad successfully. Our methodology is based on company case studies of the leading investors and other randomly selected companies with foreign investment. Our main findings include the specific ownership advantages (OA) of privatised companies, with links to their heritage from the pre-transition period. For companies established after 1990, OA is more similar to that of “traditional multinationals.” Second, we make a link between “virtual indirect” investors and this specific OA, showing how the strong position and specific knowledge of the management are interrelated in developing and changing the OA. On the basis of our research, the policy dimension concerns, first of all, the role of increasing local competition due to increased investments by foreign multinationals. This enables a few local companies to enhance their level of competitiveness to such level where they themselves will be able to become successful foreign investors. Second, highly innovative companies in small market niches are able to internationalise successfully even in the post-transition environment. Fostering R&D is thus an important tool for trade and investment policy as well.

Keywords: FDI; outward foreign direct investment; Hungary (search for similar items in EconPapers)
JEL-codes: F21 F23 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://eber.uek.krakow.pl/index.php/eber/article/download/53/59 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:krk:eberjl:v:2:y:2014:i:3:p:47-61

Ordering information: This journal article can be ordered from

Access Statistics for this article

Entrepreneurial Business and Economics Review is currently edited by Krzysztof Wach, PhD, hab.

More articles in Entrepreneurial Business and Economics Review from Centre for Strategic and International Entrepreneurship of the Faculty of Economics and International Relations at the Cracow University of Economics. EBER Journal Cracow University of Economics Faculty of Economics and International Relations Centre for Strategic and International Entrepreneurship ul. Rakowicka 27 31-510 Krakow Poland. Contact information at EDIRC.
Bibliographic data for series maintained by Piotr Stanek, PhD. ().

 
Page updated 2019-10-07
Handle: RePEc:krk:eberjl:v:2:y:2014:i:3:p:47-61