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Competitiveness and industrial renewal via production relocation by global multinational networks

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  • Miklos Szanyi

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

Abstract

Electrical industry is regarded as the backbone of the ICT branch’s hardware production. The international settlement of this industry is therefore of paramount interest for developed economies and emerging market economies as well. They all compete for investments in this sector. This study analysis the development of Hungarian electrical industry from the early years of transition when output performance was at the deepest level and when this sector along with the automotive branch became the primary source of economic expansion. The sector’s performance is compared with data from other CEE countries and with other Hungarian industries in order to illustrate the widespread modernization effects of foreign investments in this sector. The question of activities’ relocation from more developed countries to Hungary, and in most recent years from Hungary to less developed regions is also dealt with. Relocations are regarded in this paper from the Hungarian viewpoint as necessary and positive developments. Relocated activities give room for other, more sophisticated and more income generating activities

Suggested Citation

  • Miklos Szanyi, 2006. "Competitiveness and industrial renewal via production relocation by global multinational networks," IWE Working Papers 166, Institute for World Economics - Centre for Economic and Regional Studies.
    • Handle: RePEc:iwe:workpr:166
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    File URL: https://vgi.krtk.hu/publikacio/no-166-2006-02/
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    Citations

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    Cited by:

    1. Leonhard Plank & Cornelia Staritz, 2013. "‘Precarious upgrading’ in electronics global production networks in Central and Eastern Europe: the cases of Hungary and Romania," Global Development Institute Working Paper Series ctg-2013-31, GDI, The University of Manchester.
    2. Magdolna Sass & Miklos Szanyi, 2012. "Two essays on Hungarian relocations," CERS-IE WORKING PAPERS 1223, Institute of Economics, Centre for Economic and Regional Studies.
    3. Plank, Leonhard & Staritz, Cornelia, 2013. ""Precarious upgrading" in electronics global production networks in Central and Eastern Europe: The cases of Hungary and Romania," Working Papers 41, Austrian Foundation for Development Research (ÖFSE).
    4. Eric Rugraff, 2010. "Strengths and weaknesses of the outward FDI paths of the Central European countries," Post-Communist Economies, Taylor & Francis Journals, vol. 22(1), pages 1-17.
    5. Eric Rugraff & Magdolna Sass, 2016. "Voting for staying. Why didn’t the foreign-owned automotive component suppliers relocate their activity from Hungary to lower-wage countries as a response to the economic crisis?," Post-Communist Economies, Taylor & Francis Journals, vol. 28(1), pages 16-33, January.
    6. Jindra, Björn & Giroud, Axèle & Scott-Kennel, Joanna, 2009. "Subsidiary roles, vertical linkages and economic development: Lessons from transition economies," Journal of World Business, Elsevier, vol. 44(2), pages 167-179, April.
    7. Filippov, Sergey & Kalotay, Kalman, 2009. "Foreign Direct Investment in Times of Global Economic Crisis: Spotlight on New Europe," MERIT Working Papers 2009-021, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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