Dual economy, the role of the MNC-s in Hungary and the EU-accession

Judit Hamar

No 63, KOPINT-DATORG Discussion Paper Archive from KOPINT DATORG LTD. Economic Research Division

Abstract: The paper - by summarising our research results proceeded in 2000-2001 - gives some answers to the question whether the fast increasing presence of multinational companies (MNC-s) did and would increase the gap between development of indigenous and foreign owned firms in Hungary? Whether the negative effects of a dual-type of economic development could be revised (at least moderated) by the economic policy or not? Research results proved that in Hungary ten years were enough to the foreign investors to reach almost the same dominant shares in most industrial sectors as in the Irish economy during a much longer time. But the first signals of a dual type of economic development (clear advantages of the foreign owned firms compared to the indigenous ones) also emerged sooner (already in 1996) than in other countries, such as in Ireland, Portugal, or Spain.

Date: 2001-10
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