This causes a radical change in the structure of the local export: the formerly
typical division of labour among the branches the so-called inter-industry trade, by now
has been changed for the division of labour within the branch-the so-called intra-
industry trade. As a consequence of this, now the Hungarian foreign trade is less
sensitive to the fluctuations of the market trends and is a lot more protected against such
asymmetric shock-effects as the ones at the beginning of the decade.
While the share of the foreign-ownership was 11% in 1992, by 1999 it reached
50%. In certain branches - like in manufacturing, financial sector, and trade - it has
already exceeded 60 %. Another deterministic part of proprietary structure in Hungary
is the private ownership of the individuals and ventures, whose share got over 30% in
1999. By contrast the share of the state decreased to fewer than 10%. A considerable
rate of state ownership characterises the postal and telecommunication service, electric
energy industry and mining.
The foreign capital inflow and the transformation in the proprietary structure of
the economy went along with the dynamic growth of the export in the second half of the
1990’s. The integration of the Hungarian economy in the European market is well-
demonstrated by the fact that a decisive share of the Hungarian export (76%) goes into
the countries of the EU, while the average ratio of the countries of the European Union
was 63%. Only the Netherlands and Portugal show a higher value of this indicator than
Hungary.
As for the structure of the Hungarian export, 80% of it originates from
manufacturing. Within this 80% we can observe a gradual increase in the share of the
technologically advanced and moderately advanced products. It is especially notable
because the higher degree of processing results in an increase in the added value. The
considerably improving competitiveness of the economy is also shown by an increase in
the share of those groups of products in the basket of commodities the EU import of
which is over 5% (35% in 1989 and 45% in 1998). It stabilises to a great extent the
fluctuation of the market, which is rooted in the marginal export costs. The TNCs in
Hungary have already bought in crisis period the state owned deficit companies, and by
that they avoid the collapse and keep the human resources in the country (internal brain
drain).(Rédei 1995.)
It is indicative of an internationally more competitive structure of industry and
culture that since 1989 the ratio of energy and material intensive activities and
properties is steadily decreasing (46% in 1989, 16% in 1998). By the end of the decade
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