IDEAS home Printed from https://ideas.repec.org/p/has/bworkp/0008.html
   My bibliography  Save this paper

The impact of foreign direct investment inflows on regional labour markets in Hungary

Author

Listed:
  • Karoly Fazekas

    () (Institute of Economics, Hungarian Academy of Sciences)

Abstract

The objective of this paper is to examine the nature and determinants of the regional distribution of foreign investment enterprise (FIE) employment in Hungary. Factors explaining the spatial concentration of foreign direct investment (FDI) inflows are investigated and the impact of regional FDI inflows on the performance of regional labour markets is measured. The main conclusion is that the regional distribution of FDI inflows is strongly influenced by the educational level of the local population, the externalities of urban agglomerations and the geographical location of regions. Additional advantages are identified in the case of those regions adjoining the Western-Slovakian, Austrian and Slovenian borders. A self-reinforcing process can be observed here: FDI is attracted to regions where unemployment is lower due to better educational levels and geographical advantages, while an increase in FDI in turn creates new job opportunities. We believe, however, that education and geographical location are in large part merely symptomatic of other, underlying factors. Uncovering these underlying factors has obvious policy implications: location as such cannot be changed, for example, but these background variables could be modified by changes in regional policy.

Suggested Citation

  • Karoly Fazekas, 2000. "The impact of foreign direct investment inflows on regional labour markets in Hungary," Budapest Working Papers on the Labour Market 0008, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
  • Handle: RePEc:has:bworkp:0008
    as

    Download full text from publisher

    File URL: http://www.econ.core.hu/doc/bwp/bwp/bwp008.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Martín, Carmela & Velazquez, Francisco J, 1997. "The Determining Factors of Foreign Direct Investment in Spain and the rest of the OECD: Lessons for CEECs," CEPR Discussion Papers 1637, C.E.P.R. Discussion Papers.
    2. Gianmarco I. P. Ottaviano & Diego Puga, 1998. "Agglomeration in the Global Economy: A Survey of the 'New Economic Geography'," The World Economy, Wiley Blackwell, vol. 21(6), pages 707-731, August.
    3. Károly Fazekas, 1996. "Types of Microregions, Dispersion of Unemployment, and Local Employment Development in Hungary," Eastern European Economics, Taylor & Francis Journals, vol. 34(3), pages 3-48, June.
    4. James R. Markusen, 1990. "First Mover Advantages, Blockaded Entry, And the Economics of Uneven Development," NBER Working Papers 3284, National Bureau of Economic Research, Inc.
    5. Laura Resmini, 2000. "The Determinants of Foreign Direct Investment in the CEECs: New evidence from sectoral patterns," The Economics of Transition, The European Bank for Reconstruction and Development, pages 665-689.
    6. Ronald W. Jones, 1965. "The Structure of Simple General Equilibrium Models," Journal of Political Economy, University of Chicago Press, vol. 73, pages 557-557.
    7. Gabor Kertesi & Janos Kollo, 1999. "Unemployment, Wage Push and the Labour Cost Competitiveness of Regions - The Case of Hungary, 1986-1996," Budapest Working Papers on the Labour Market 9905, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Anna Maria Ferragina & Francesco Pastore, 2008. "Mind The Gap: Unemployment In The New Eu Regions," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 73-113, February.
    2. Csengődi, Sándor & Jungnickel, Rolf & Urban, Dieter M., 2005. "Foreign Takeovers and Wages: Theory and Evidence from Hungary," HWWA Discussion Papers 337, Hamburg Institute of International Economics (HWWA).
    3. Sándor Csengödi & Rolf Jungnickel & Dieter M. Urban, 2008. "Foreign Takeovers and Wages in Hungary," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 144(1), pages 55-82, April.
    4. Karoly Fazekas & Jeno Koltay (ed.), 2004. "The Hungarian Labour Market 2004," The Hungarian Labour Market Yearbooks, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences, number 2004, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    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:has:bworkp:0008. 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: (Adrienn Foldi). General contact details of provider: http://edirc.repec.org/data/iehashu.html .

    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.