Analysis about Hungary's attractiveness to investors with particular regard to foreign direct investments

Tarró, Adrienn and Krámli, András: Analysis about Hungary's attractiveness to investors with particular regard to foreign direct investments. In: Regional Growth, Competitiveness and Development. pp. 101-113. (2013)

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From the beginning of the 1990s Foreign Direct Investments (FDI) inflows have always played an important role in the Hungarian economy. The situation did not change even though the inflows and the stock of FDI have been decreased for the last few years. Hungary as a small open economy depends heavily on foreign capital and foreign direct investments. However foreign capital and foreign direct investments inflows enter the countries under prosperous market, political, economic, social and legal conditions. These factors have a growing significance during the economic and financial crisis. Responding to the challenges of the economic recession more and more countries are seeking to improve their ability to attract capital because the foreign direct investments are defined as a key factor of economic growth. The question is which factors are improving Hungary's ability to attract capital? In the first part of the study1 decisive factors will be revealed contributing to a country's competitiveness and ability to attract capital. In the second part these factors will be analyzed related to the Hungarian economy. In the study we describe some problems of emerging economies such as the existence of the dual economic structure, the phenomenon of stagflation, the high tax burdens and low wages all with regard to Hungary. Furthermore it will be analyzed how the low-wage jobs are promoting Hungary's attractiveness to investors. In the conclusion our proposals will be formulated in order to retain as well as improve Hungary’s attractiveness to investors.

Item Type: Book Section
Journal or Publication Title: Regional Growth, Competitiveness and Development
Date: 2013
ISBN: 978-963-306-222-7
Page Range: pp. 101-113
Uncontrolled Keywords: Gazdasági növekedés - Magyarország, Versenyképesség - Magyarország
Additional Information: Bibliogr.: p. 112-113. ; összefoglalás angol nyelven
Date Deposited: 2019. May. 23. 09:15
Last Modified: 2019. May. 23. 09:15

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