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Relationship of structural change and competitiveness in Hungarian manufacturing 1998-2003

Author

Listed:
  • Miklos Szanyi

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

Abstract

Structural change is at the heart of economic modernization. For catching up of an economy can be interpreted as the result of exceptionally quick growth in certain more modern branches, meanwhile other activities’ economic role should decline. Structural change has long been regarded as a primary source of economic growth, but it became ever more important in the context of development economics and most currently in relationship with transition economies. Yet, this paper tries to elabourate the various avenues how structural change could contribute to catching up of Hungarian manufacturing industries. The paper concentrates on statistical analysis trying to establish linkages between a set of structural change indicators and another set of economic performance indicators. This exercise verifies the modernization role of structural change: branches with high and increasing value added and productivity gained weight. Attempts were also made to relate the research findings to some existing strings of economic literature. Thus, the paper provides a shift-share analysis of productivity growth. Despite of methodological difficulties and data reliability problems this paper could verify the logic of structural change which is heading towards branches with higher levels of value added. However, no convincing evidence was found that the fast growing branches and activities were the most profitable or most productive ones.

Suggested Citation

  • Miklos Szanyi, 2006. "Relationship of structural change and competitiveness in Hungarian manufacturing 1998-2003," IWE Working Papers 170, Institute for World Economics - Centre for Economic and Regional Studies.
    • Handle: RePEc:iwe:workpr:170
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    File URL: https://vgi.krtk.hu/publikacio/no-170-2006-08/
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    References listed on IDEAS

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    1. Gabor Hunya, 2002. "Recent Impacts of Foreign Direct Investment on Growth and Restructuring in Central European Transition Countries," wiiw Research Reports 284, The Vienna Institute for International Economic Studies, wiiw.
    2. Maria Savona, 2004. "Structural change and macro-economic performance. The structural bonus hypothesis for services," Post-Print halshs-00232164, HAL.
    Full references (including those not matched with items on IDEAS)

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