These two major tendencies in the regional development of Hungary after 1990 can be
observed on all the important fields of economy, but decisively in the economic
performance, and the inflow of the foreign capital. Among other things it is indicative
of the centre-periphery disparities that in 1998 the value of GDP/ capita in the second
most developed region, in Western Hungary was only three-fourth of the same indicator
in the Central Hungarian region comprising Budapest and Pest county. That refers to the
same disparity in Central Hungary the employed foreign capital investment per capita is
1.5 times bigger than in the second most developed region (Western Hungary).
Even more eye-striking differences can be observed between the eastern and the
western regions of the country. In the Northern Great Plain region the GDP/ capita is
just two-third while the capital investment per capita is one-third of those of the
Western Hungarian region.
The macro regional differences can be led back to the tendency that the foreign
capital investors preferred mostly those areas where there was cheap, well-skilled,
flexible work force available, where the human and technical infrastructure was
favourable and which have good transportation links with the Western European
markets. As they first found areas meeting these expectations only in Budapest, in the
agglomeration of the capital city and in Western and Central Hungary the capital
investments were mostly realised here.
Regional specialisation patterns in industrial Employment
The degree of specialisation, measured by Herfindahl index, was the highest in the three
Transdanubian counties: Fejér, Vas and Tolna.
In Fejér county 43% of the labour force were occupied in the machinery and equipment branch,
while 25% worked in metallurgy and the manufacturing of metal products. In Vas county the textile,
wearing apparel, leather production branch employed 36%, the machinery and equipment branch 32% of
the industrial workers. In Tolna textile, wearing apparel and leather production turned out to be one of the
most outstanding branches with its share of 38% in the employment structure of the county. The second
most important industry was electricity, gas, steam and water supply with 22%.
Dissimilarity index suggests the most advanced specialisation in workforce differed from the
national "average surface" (index > 0.5) in specialised south counties The value of the overall industrial
export was given by the machinery and equipment branch, 25% by chemical industry. 38% of the
industrial export originated from Budapest. By 1998 the industrial export grow eight times bigger. The
machinery and equipment branch provided 61% of the Hungarian industrial export. In the overall
industrial production of the country the leader is Fejér county with its contribution of 22%.
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