Survey and Study paper on the Hungarian Investment Environment

The aim of this study is to investigate the reasons for weak investment activity of the Hungarian corporate sector in the last decade, with special regard to the recent years. Chapter 1 gives a general overview of the Hungarian investment performance since 2005 compared to the neighbouring countries, broken down by sectors, asset types and industries. Chapter 2 focuses on the investment activity of the corporate sector by using microeconomic data that provide the possibility to have a more detailed picture about the share of firms of different size and of different ownership. Chapter 3 tries to identify the relation between national competitiveness indices and private investment performance by using the institutional indicators of the World Economic Forum. Chapter 4 evaluates the results of the survey that was conducted in the framework of this work among 400 firms representing all industries in Hungary. Respondent companies identified the main bottlenecks to investment incentives in four fields: institutional barriers, access to labour, access to capital and knowledge and technology. Chapter 5 processes the result of deep interviews made with 40 managers from different industries along the same structure of thematic blocks that were surveyed by the questionnaires.

The study was prepared for the European Commission Representation in Hungary (No.  22/2016, Tender No.: 18/07/29016).

Prepared by: Éva Palócz, Zoltán Matheika, Ágnes Nagy, Katalin Nagy, Gábor Oblath, Péter Vakhal. The working group was led by: Éva Palócz.

The paper is available here.