IDEAS home Printed from
MyIDEAS: Login to save this article or follow this journal

Capital Stock and Economic Development in Hungary

  • Zsolt M. Darvas
  • András Simon

Income per capita of Hungary attained 70 percent of the Austrian level by the end of the eighteenth century and fluctuated around this value between the World Wars. As an „achievement” of the last 50 years this ratio — measured at purchasing power parity — has decreased to about 40 percent by the beginning of the nineties. Economic successes since transformation started raised the hope that the Hungarian economy’s lot might turn from the process of lagging behind to catching up. This hope is supported by microeconomic factors such as the intellectual skills of labor, entrepreneurial abilities, and the capacity to accommodate new knowledge and technologies. However, the utilization of microeconomic potentials greatly depends on macroeconomic policies. Microeconomic development efforts lead to increase of investments at the aggregate level, therefore, macroeconomic policy must face the problem of balancing needs and resources. This paper tries to quantify the determinants of this balance. The value ofthe physical capital stock is estimated and on the basis of international experiences investments paths for future income levels are set. Savings prospects of different sectors are confronted with investments needs. Calculations are followed by an economic policy analysis of the fiscal measures needed to catch up to 70 percent of the Austrian level again by 2030.

(This abstract was borrowed from another version of this item.)

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
File Function: link to full text
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by The European Bank for Reconstruction and Development in its journal The Economics of Transition.

Volume (Year): 8 (2000)
Issue (Month): 1 (March)
Pages: 197-223

in new window

Handle: RePEc:bla:etrans:v:8:y:2000:i:1:p:197-223
Contact details of provider: Postal: One Exchange Square, London EC2A 2JN
Web page:

More information through EDIRC

Order Information: Web:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:bla:etrans:v:8:y:2000:i:1:p:197-223. 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: (Wiley-Blackwell Digital Licensing)

or (Christopher F. Baum)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.