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Business services in Hungary during the transition


  • Ilona Kovacs

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


Examples of Western developed economies show a strict correlation between the state of services sector and the level of economic development. Services should be considered as a catalysator in a modern economy. Services play a key role in macroeconomic development, in reducing unemployment, in relieving economic crisis and a key role in knowledgebased economy. Efficiencies of service provisions enable the growth of all other sectors which rely on services as inputs, while neglecting of vital service branches doom many other sectors to failure. Starting from the above thesis a general picture of the state of services, particularly business services is given before and after the transition, in order to pinpoint the effect of the transition process from socialism to capitalism.

Suggested Citation

  • Ilona Kovacs, 1999. "Business services in Hungary during the transition," IEHAS Discussion Papers 9904, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
  • Handle: RePEc:has:discpr:9904

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    References listed on IDEAS

    1. Kolleen J. Rask & Kevin N. Rask, 1994. "The pivotal role of services in transitional economies: lessons from the West," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 2(4), pages 467-486, December.
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    business services;


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