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Hungarian-Romanian Cross-Border Economic Co-Operation

Author

Listed:
  • Gábor HUNYA

    (WIIW in Vienna, Austria)

  • Álmos TELEGDY

    (Central European University in Budapest, Hungary)

Abstract

The differences in the transformation process have resulted in a diverging economic development in Hungarian and Romanian regions while their contacts have intensified. The less developed part of a more developed country meets the more developed part of a lesser-developed country. A firm- survey carried out on the two sides of the border between Hungary and Romania shows that firms take advantage of the closeness of the other region, at least in terms of foreign trade. We find no evidence for the migration of the workforce from the lower-salary region toward the higher-salary one. The sample supports the hypothesis that Hungarians from the border region invest in the nearby Romanian region. Although the time of EU accession is far away compared to the time-horizon of firms, substantial changes can be foreseen for the time when Hungary becomes a member but not Romania. Hungary may lose its attractive- ness for Romanian firms as a bridgehead and easily accessible country.

Suggested Citation

  • Gábor HUNYA & Álmos TELEGDY, 2003. "Hungarian-Romanian Cross-Border Economic Co-Operation," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 18, pages 13-30.
  • Handle: RePEc:tou:journl:v:18:y:2003:p:13-30
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    File URL: http://region-developpement.univ-tln.fr/fr/pdf/R18/R18_Hunya_Telegdy.pdf
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    Citations

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    Cited by:

    1. Valentin Toader, 2006. "The Impact Of Romanian-Hungarian Commerce On Romanian Western Boundary Counties," JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, Babes-Bolyai University, Faculty of Business.

    More about this item

    Keywords

    REGIONAL DEVELOPMENT; ROMANIA; HUNGARY; TRADE; FDI; CO-OPERATION; EU-ENLARGEMENT;

    JEL classification:

    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • P27 - Economic Systems - - Socialist Systems and Transition Economies - - - Performance and Prospects
    • F15 - International Economics - - Trade - - - Economic Integration
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R39 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other

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