of the evolution of the exchange of goods is that its ratio directed to the members of the
Union is getting bigger, it is similar in structure to the export of the EU members
specialising in certain products like machines.
The question of major importance is; what determines the relocation of
production in another country and the choice of location within the country’s territory?
In order to get to the regional aspects of inter-state capital relocation, we need to
know in what ways the competition made the companies innovate. Though Hungary had
a relatively highly qualified workforce, the demand for the quality products appeared
only after 1996, the economic crisis. The access to newer technologies, the stimulation
for investments came only afterwards. Once seeing a stabilised and prospering
economic surroundings -exactly in this period - the foreign investors extended the
volume of production. The standardised production reduced the necessity of employing
the best-qualified workforce. This was the point, when the comparative advantages and
the geographical relocation of production came into the picture. The structure of foreign
employed capital changes, as the contribution of manufacturing reduced from 54% to
38%; while the share of energy industry, real estate and the financial sector multiplied
between 1992-98.
There was a general upward shift. Trade is mainly directed to the EU countries
and the pattern of goods is similar to that of the developed countries. In the choice of
locality we can see two tendencies one is the take-over and up dating of former
localities the other is the preference of the areas near the border, where the economic
conditions are more favourable. The relocation of basis industries can be experienced
from the EU countries as the human resources and the environmental restrictions are
soft economic barriers. The developed technologies, decision-making of strategic
importance research and development have just started to infiltrate. In order to keep the
competitiveness of the production, the basis industry of the western world appeared,
which is supported by the solvency of the market. In regional terms the differences in
earnings have slightly changed. Waging does not apply to the rate of growth in the
economy. The wages are held back.
The distribution of labour force in manufacturing went through substantial
changes between 1992-1999. Budapest lost its position by 10%, which resulted in an
increase in the case of certain counties. The tendency indicates the fact that the spatial
distribution is becoming more and more even. The workforce involved in
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