Regional specialisation in a transition country - Hungary



manufacturing in Budapest accounts for 22-32% of the national total. However,
important but not outstandingly high percentage (6-7%) can be observed in Pest, Gy
or.

Summing up the counties in south and east don't follow any forthcoming
situation, but lag behind them. One of the explanations is that the economy of
neighbouring countries is not attracting the foreign interest as highly as it is here. In the
south and east part of Hungary there is no transact, which could roll the global
economy.

The main finding to connection between development(GDP) and sectoral
analysis was by two-variable regression analysis, and by a quadratic polynomial trend-
line in period 0,6 values of deterministic co-efficient. Without Budapest it can be
reached a better value. Changes in the regional disparities among the counties (NUTS3
level) and within bigger regions (NUTS2 level) with respect to the values of GDP per
capita. It can be raised a question of macro-regions in the relation of smaller regions
have polarisation or nivellation. There is no close relationship between the economic
development of the base year and the rate of the economic growth. This results in an
increase in the degree of inequalities. In the follow up research we can’t verify local
polarisation.

Conclusions

The volume and commodity of international trade shows high level of integration for Hungary.
The permanent FDI towards in the country and especially the manifested sector interest was in
manufacture, verifying the global targets. In the first period of transition the labour intensive textile, food
branch was flourishing and in the mid of 90thies shifted towards the technological higher value added
structure to the machinery and services.

In the first half of last decades the food industry was climbing up in most of the regions and on
the second half of the 90thies the machinery sectors started to spread and reached a meaningful positions,
especially in the western part of the country. The regional distribution of the FDI concentrated to the
western borderline and to the Central region. Both was due to the extra profit, the low barriers in the
competition, the eligible local bargain, comprehensive business trust, living standards, tradition of
working style, kvalified labour and better accessibility of the European core market. These regions have
some historical background to be part of the Austria -Hungarian monarchy and have more experience on
the market economy.

The high FDI flow avoid the country from the deepening crisis, which is also contributed to the
current success as well. The FDI means not just a capital injection for regions, but even more, provides
several constant expectation of international competitions across the production. Upgrading their
awareness.

The regional disparities are rising. In western part the big trans-national companies are affiliated,
the size, efficiency, intra-firm arrangement, outsourcing, technological expectation, global management

C:anyuwork/ace/ersa/paper01.07.2412:14

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