The impact of the crisis on and crisis-handling patterns in foreign-owned companies in Hungary

Gábor Túry (), Magdolna Sass and Agnes Szunomar
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Gábor Túry: Institute of World Economics, Centre for Economic and Regional Studies, ELRN

No 266, IWE Working Papers from Institute for World Economics - Centre for Economic and Regional Studies

Abstract: The COVID-19 pandemic has brought over a related economic crisis, which affected firms differently. The paper concentrates on the impact of the pandemic on foreign-owned subsidiaries operating in Hungary in the automotive and electronics industries. Based on interviews with the representatives of fifteen such companies, we analysed the extent of the impact of the crisis on these firms and their crisis handling measures, including their reliance on state support. Our results are mainly in line with findings from the international literature, but with certain new elements. We found that not only the industry but the activity itself is also important from the point of view of the impact of the crisis. We have also shown that foreign-owned subsidiaries are seldom in need for state financial support. In Hungary, as well as in other countries, layoff is the last resort for handling the crisis. We showed signs of increasing solidarity in handling the crisis at the company level.

Keywords: economic crisis; foreign-owned subsidiaries; automotive and electronics industries; Hungary (search for similar items in EconPapers)
JEL-codes: F23 H12 L62 L63 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2021-12
New Economics Papers: this item is included in nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:iwe:workpr:266

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