The Efficiency Of Real And Human Resources In Hungarian Industry

The author attributes economic growth in Hungary to three factors: structural change, increase of employment, and productivity. On the basis of this he points out that in the 1950's the first two factors were responsible for nearly half of the economic growth. From the 1960's this tendency has changed; more and more importance has been taken by the increase of productivity. As the main source of economic growth is the increase of industrial productivity, in the further part of the study the author makes an attempt to break down the development of Hungarian industry into its components and to analyse their efficiency. Starting from the present conditions of industrial development he investigates what further increase of industry the resources accumulated till now and their probable growth will allow in the future. Taking into account the role of material and human resources the author draws the following conclusions. Industrial production will increase in the future at the same rate as productivity. The increase of industrial investment will probably be lessened, which postulates the greater increase of capital productivity as well as that productivity will increase at a higher rate than the capital‐labour ratio. These conclusions assume an increase in the efficiency of industrial investment and an above average increase in the high‐productivity branches. A further source of increasing productivity is accumulated human capital. The higher educational level is one of the guarantees for the ever‐increasing role of productivity in economic growth in the future.