FDI and Industrial Networks in Hungary

The paper summarises some of the key findings of research on the macro and microeconomic effects of FDI, the impact of the MNCs on development, industrial and trade restructuring, and presents a first attempt to draw a map of industrial networks in Hungary. It answers the question whether the rapidly increasing presence of the MNCs did, and will, increase the gap between indigenous and foreign-owned firms in Hungary, or not; and whether the negative effects of a dual-type of economic development could be revised or at least moderated by economic policy Some policy conclusions on the competitive and strategic position of the interviewed firms and their "parents" are drawn from the results....