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New Trends in Foreign Direct Investment Flovs in Hungary

Author

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  • Péter Ákos Bod

    (Corvinus University)

Abstract

FDI flows to Hungary have slowed down in recent years, while FDI outflows have grown significantly. A change in capital flow trends is influenced by the termination of the privatisation process in Hungary. It is still open to interpretations whether the deterioration of the net FDI balance is also due to loss of international competitiveness of the country. Based on surveys on strategic decisions of major corporations, the study concludes that in the period of2000 to 2003 mostly firm and region specific factors shaped the capital outflows. However, a further deterioration of FDI balance would be detrimental to the development of the Hungarian economy. Sources and sector targets of further FDI inflows in the period directly before and after the accession to the EU are expected to differ significantly from those in the 1990s.

Suggested Citation

  • Péter Ákos Bod, 2004. "New Trends in Foreign Direct Investment Flovs in Hungary," Theory Methodology Practice (TMP), Faculty of Economics, University of Miskolc, vol. 2(01), pages 3-8.
    • Handle: RePEc:mic:tmpjrn:v:2:y:2004:i:01:p:3-8
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    File URL: http://tmp.gtk.uni-miskolc.hu/volumes/2004/01/TMP_2004_01_01.pdf
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