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The impact of the crisis on and crisis-handling patterns in foreign-owned companies in Hungary

Author

Listed:
  • Gábor Túry

    (Institute of World Economics, Centre for Economic and Regional Studies, ELRN)

  • Magdolna Sass

    (Institute of World Economics, Centre for Economic and Regional Studies, ELRN)

  • Ágnes Szunomár

    (Institute of World Economics, Centre for Economic and Regional Studies, ELRN)

Abstract

The COVID-19 pandemic has brought over a related economic crisis, which affected firms differently. The paper concentrates on the impact of the pandemic on foreign-owned subsidiaries operating in Hungary in the automotive and electronics industries. Based on interviews with the representatives of fifteen such companies, we analysed the extent of the impact of the crisis on these firms and their crisis handling measures, including their reliance on state support. Our results are mainly in line with findings from the international literature, but with certain new elements. We found that not only the industry but the activity itself is also important from the point of view of the impact of the crisis. We have also shown that foreign-owned subsidiaries are seldom in need for state financial support. In Hungary, as well as in other countries, layoff is the last resort for handling the crisis. We showed signs of increasing solidarity in handling the crisis at the company level.

Suggested Citation

  • Gábor Túry & Magdolna Sass & Ágnes Szunomár, 2021. "The impact of the crisis on and crisis-handling patterns in foreign-owned companies in Hungary," IWE Working Papers 266, Institute for World Economics - Centre for Economic and Regional Studies.
    • Handle: RePEc:iwe:workpr:266
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    File URL: https://vgi.krtk.hu/publikacio/no-266-2021-12/
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    More about this item

    Keywords

    economic crisis; foreign-owned subsidiaries; automotive and electronics industries; Hungary;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment

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