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Western policy lessons in the second phase of regional transformation

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  • Andrea Szalavetz

    (Institute of World Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences)

Abstract

The backward regions of Hungary failed to catch up during the first decade of the Hungarian transition, despite spectacular progress with modernization, accelerating economic growth, deep-rooted changes in regional-development policy, institutions and practice, and substantial spending on regional development. On the contrary, the spatial concentration of the foreign direct investment (FDI) that was attracted exacerbated the regional differences. Some regions caught up very fast and became growth-poles. The situation in others kept deteriorating, while certain regions simply remained hopelessly underdeveloped. Drawing on Western experience and international literature on regional development, this paper analyses the applicability to Hungary of the Western policy approach and of certain measures aimed at restructuring and revitalizing old (traditional) industrial regions.

Suggested Citation

  • Andrea Szalavetz, 2001. "Western policy lessons in the second phase of regional transformation," IWE Working Papers 119, Institute for World Economics - Centre for Economic and Regional Studies.
    • Handle: RePEc:iwe:workpr:119
    as

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    File URL: https://vgi.krtk.hu/publikacio/no-119-2001-09/
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    References listed on IDEAS

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