Regional specialisation in a transition country - Hungary



creating an internationally required efficiency for standard mass production. In East the small local
companies are, an early level of supply chain management low living conditions and inferior level of
added value activity. The size, ownership and competitiveness are interdependent. From geopolitical
point is important, that in the neighbouring countries economy has no pulling effect, there is no transact.

The horizontal regional specialisation can be verify by the export value better, than the
employment data or industrial production. Instead of earnings level it is the standards of living allowed
them that should be the basis of comparison.

The Great Plain has an early level of specialisation concerning the low level of industrialisation.
In 1998 the geographic concentration was the biggest in the case of the chemical industry, the wood,
paper and printing industry and in that of mining and quarrying. The highest degree of absolute
specialisation, in most of the cases is caused by the dominance of the machinery and equipment branch
The transition nivellation or more disparities came into being in the relation of the counties in the level of
economic development.

Concluding: the polarisation is not helping the European integration process. So, the national
development policy have challenge to develop the SMEs to be partner in the global economy, which is
contribute the regional catching up process in South and East. In long-term the development of lagging
area is a basis for gaining advantage for border regions. The main factors of regional disparities are
following.

the structure of economy in north-west Transdanubia is suitable for global actors,

there are comprehensive business conditions and better market accessibility's to the European core
markets,

In West there are top investors, who represent the business trust for others, having own a sizeable
companies, with supply chain management, some cluster can be found,

In South and east lower level of investment and SMEs, which can not afford the efficient technology,
there is no inter-firm reserves to combine by outsourcing,

At early period of transition there was some impetus of specialisation, which is broaden by
integration. The loss of low value added branches highly contributed to competitive changes.

The types of regional disparities Budapest shifted to kvaterner (administration, financial,
communication, decision making, strategic action, and public mode) sector. And nowadays it is
playing more rolls, than a country capital.

We can verify rebirth of the traditional development line Northwest Hungary through capital towards
north-east. So the South part of Hungary looks slowly integration part of Hungary, due to the not stable
and attractive neighbourhood countries, which could have motivated these regions as well.

References

■   Jozsef Nemes Nagy (2000) The new regional structure in Hungary In: Integration and transition in

Europe-the economic geography of interaction Routledge London

■   Mary Rédei (1995) Internal brain drain In: Hungary at the crossroads Budapest HAS Budapest

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

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