10 Anna Iara / Iulia Traistaru
over the period 1994-2000. Regions bordering the EU had the highest specialization
level compared to the national average over the period 1994-1999, while in 2000, the
highest specialization level was in the group of regions bordering countries outside the
EU enlargement. Interior regions and regions bordering countries outside the EU
enlargement had the highest increase in regional manufacturing (on average by over 15
percent). The level of manufacturing specialization remained constant in regions
bordering the EU and decreased in regions bordering other accession countries.
Regional differentials with respect to manufacturing specialization increased as shown
by the standard deviation and the ratio between the highest and lowest specialization
indices. While the lowest level of specialization has not changed, the highest level of
specialization increased from 0.28 to 0.38.
Tables A1.9- A1.10 show summary statistics for regional differentials of real
regional GDP in Hungary in the period 1994-2000. Regional differentials increased as
indicated by the increasing values of the standard deviation, the max/min ratio and the
coefficient of variation. While the lowest regional GDP per capita changed little, the
highest regional GDP per capita increased by 33 per cent from 1994 to 2000. The ratio
between the highest and the lowest regional GDP per capita increased from 2.9 to 3.8
over the period 1994-2000. Regional disparities are present even when the capital
region is excluded. In this latter case the level of the highest GDP per capita was in
2000 by 52 percent higher compared with 1994. The ratio between the highest and
lowest regional GDP per capita increased from 1.7 to 2.5.
The regions bordering the EU (Austria) had the highest differential with respect
to the real GDP per capita compared with the national average. These regions have
increased their differential relative to the national average from 19 percent in 1994 to 45
percent above the national GDP per capita in 2000.
These data suggest that in Hungary, over the period 1994-2000, high FDI
intensity and high manufacturing specialization were associated with better than average
economic performance. Over the same period, average manufacturing specialization
increased by 6.5 percent. Regional differentials in the GDP per capita among the
regions in Hungary in the period 1994-2000 increased. The differentials appear to be
driven by the regions with higher levels of income. The regions bordering EU had the
highest GDP per capita and the highest levels of FDI intensity and manufacturing
specialization.