No. 59, 1999 - Regional Effects of FDI-Inflows in Hungary

This study summarising the research results proceeded in 1998 aims to measure the real and changing effects of the FDI-inflows by Hungarian regions, and to identify the main explaining factors of differences in the FDI-attractiveness. Looking for the answer whether FDI-inflows have increased the “split of the country into two parts”, or contrary, contributed to narrow the gap in development ability among regions, our research results did not proved the view of growing differences by regions. Some border regions showed clear disadvantages in FDI-attractiveness, however, our analyses underlined the overwhelming dominance of Budapest almost in the case of each factors. One of the most important results of our analyses, that the FDI-inflows outside the Capital, even if they seemed to be almost negligible compared to the amount invested in Budapest, have contributed significantly to the country development, lessened the unemployment level almost in all countries, increased the export-ability and –orientation, improved the company performance, while the foreign capital owners have gained determinant role almost in each economic activity.
Next, we will summarise the regional characteristics of the FDI-inflows in Hungary as a research results of the double accounting firm’s (legal and non-legal entity’s).
The paper is available here.