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Related trade variety, foreign-domestic spillovers and regional employment in Hungary

Author

Listed:
  • Zoltán Elekes

    (Agglomeration and Social Networks Lendület Research Group, Centre for Economic and Regional Studies, Tóth Kálmán u. 4, Budapest, H-1097, Hungary
    Department of Geography, Umea University, Umeå, Sweden
    Institute of Economics and Economic Development, Faculty of Economics and Business Administration, University of Szeged, Szeged, Hungary)

  • Balázs Lengyel

    (Agglomeration and Social Networks Lendület Research Group, Centre for Economic and Regional Studies, Tóth Kálmán u. 4, Budapest, H-1097, Hungary
    Laboratory for Networks, Technology & Innovation, Institute of Advanced Studies, Corvinus University of Budapest, Budapest, Hungary
    International Business School Budapest, Budapest, Hungary)

Abstract

This paper investigates the role of extra-regional capabilities in regional economic development in a Central and Eastern European context.This is done by analysing the association between the related variety of manufacturing import and export of domestic- and foreign-owned firms on the one hand, and regional employment in manufacturing export on the other. By means of a panel regression framework applied to the Hungarian microregions between 2000 and 2011, we find that domestic firms, in particular, benefit from the related variety of export activities in the regions, while import related to existing export activities is beneficial amongst both foreign and domestic firms. Furthermore, bridging the technological gap between foreign companies and the host economy requires stronger technological relatedness, unless domestic firms have experience in importing.

Suggested Citation

  • Zoltán Elekes & Balázs Lengyel, 2020. "Related trade variety, foreign-domestic spillovers and regional employment in Hungary," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 70(4), pages 551-570, December.
    • Handle: RePEc:aka:aoecon:v:70:y:2020:i:4:p:551-570
    DOI: 10.1556/032.2020.00036
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    More about this item

    Keywords

    related variety; international trade; MNEs; host economy; regional growth;
    All these keywords.

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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