Business services in Hungary during the transition

Ilona Kovacs ()
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Ilona Kovacs: Institute of Economics, Hungarian Academy of Sciences

No 9904, CERS-IE WORKING PAPERS from Institute of Economics, Centre for Economic and Regional Studies

Abstract: Examples of Western developed economies show a strict correlation between the state of services sector and the level of economic development. Services should be considered as a catalysator in a modern economy. Services play a key role in macroeconomic development, in reducing unemployment, in relieving economic crisis and a key role in knowledgebased economy. Efficiencies of service provisions enable the growth of all other sectors which rely on services as inputs, while neglecting of vital service branches doom many other sectors to failure. Starting from the above thesis a general picture of the state of services, particularly business services is given before and after the transition, in order to pinpoint the effect of the transition process from socialism to capitalism.

Keywords: business; services (search for similar items in EconPapers)
Pages: 35 pages
Date: 1999
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