IDEAS home Printed from
   My bibliography  Save this article

Foreign Investments and Economic Catching Up: The Case of Hungary


  • András Székely-Doby


Both economic history and theory show us that foreign capital is indispensable in the process of modernization. Countries in Central and Eastern Europe in the late 80s were facing an extremely challenging double task: they had to transform both their political and economic systems. Despite the difficulties most of them tackled all the problems with remarkable success, creating the bases of market economies and democracies simultaneously. Rapid privatization and institution building signed the way of Hungary, the first mover in the transition process, and – as a consequence – strong capital inflow (mostly FDI) occurred. The domination of MNCs has become evident by now, and outward investments began to rise, too. In this paper we analyze foreign direct investments in Hungary, the activities of multinational companies, and the characteristics of outward investments in the last two decades.

Suggested Citation

  • András Székely-Doby, 2007. "Foreign Investments and Economic Catching Up: The Case of Hungary," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 55-65.
  • Handle: RePEc:bas:econst:y:2007:i:1:p:55-65

    Download full text from publisher

    File URL:
    Download Restriction: Fee access

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. Arthur, W Brian, 1989. "Competing Technologies, Increasing Returns, and Lock-In by Historical Events," Economic Journal, Royal Economic Society, vol. 99(394), pages 116-131, March.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. András Székely-Doby, 2011. "The EU’s External Relations: the Case of BRIC Countries with Special Emphasis on China," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 69-79.

    More about this item

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bas:econst:y:2007:i:1:p:55-65. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Diana Dimitrova). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.