Regional specialisation in a transition country - Hungary



Abstract

The nivellation policy was the main target of central planned economy. In spite
of this efforts some regions became in a prospective positions, than the others. The
growing interest on regional issue initiated from the question, how will the economy
choose it’s new place? Are they evaluating the geographical places according the new
economy variables, who or what regulate the regulators? What are the limitations of
the regional suverinity? How effective is the regional promotion?

Hungary is a considerable area to study the pattern of “new economic geography”.

About the adaptation process we will draft some policy orientation for decision makers.

Integration of transition economies into the global economy

The main driving forces of globalization seems to be the internationalization of production
accompanied by changes in the structure of production, expansion of international trade and services, and
widening and deepening of international capital flows.

Economic transition of a country cannot be realised from his own sources. The FDI appearance
in a country, considered the consummation of a world evaluation, selected for an expectation. The capital
flow is an injection to speed the process of transition. The achieved level of transition have succeeded to
largely integrate themselves into global economy. The present of global actors means a permanent
international standard for production and for all structural reforms going on. Macroeconomic reforms
alone do not lead automatically to supply responses for a comprehensive transformation. These reforms
do not deal systematically with structural weaknesses of a country. A clearly defined set of
microeconomic policy led to prosperity of transition.

What is the transition? That means a better allocation and timing of resources, a "new
knowledge" to map and use in proper time and place the indoor or outdoor-sourcing. Those territorial
units, which have well-developed infra-structural network, they are able exploit the sources according the
market need. Or dismantling of one system and its replacement by another.

The picture of globalization are ambivalent, there are winners and losers. There appears to be a
growing inequality among the regions resulting from the globalization process. For developing and
transition countries, their globalization performance can be measured with the level and the speed of their
integration into global economy. There are two factors that seems to be crucial importance. The first one
is economic growth, in relation of the efficient conditions. The second factor is the quality of policies,
which is designed to increase an economy's growth and stability are likely to influence a speeded
integration. The appearance of globalization is a region means a challenge, to extend a trial of local
policy. Those regions, which are good enough in the local bargain, they are upgrading their territory for
future, re-evaluate the land use. Setting up a new orientation. What are the determinants of the location of
foreign direct investment? It is a self-reinforcing process or they want to lock the future? The changes
are not free of charge. The question is that who is paying the changes? Local representatives, investors or

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



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