Külgazdaság Vol. 9-10/2021

The effects of inward foreign direct investments on Hungarian economic growth – heterogeneity by country of origin


After the regime change in 1989, Hungary has been involved in globalization whose one of the most important component are international capital flows. Within a rather short period of time, Hungary has become an attractive target for foreign direct investments (FDI). By now, the weight and role of foreign capital in the Hungarian economy is beyond question. The effects of FDI on the recipient country’s economy have been analysed for a long time in the relevant economic literature. The major conclusion is that FDI can foster economic growth. The main channel of the positive effects is technology transfer: FDI investors bring advanced technology and knowledge that can improve the recipient country’s economic performance. Accepting the existence of the transmission channel, it is assumed that the more developed the investor country, the stronger the effect is, since an investor of a developed country can bring more advanced technology and know-how. In this paper, this hypothesis was tested with the help of the so-called autoregressive distributive lag model on Hungarian macro-level data ranging from 2001 to 2018. The results confirm our hypothesis. Journal of Economic Literature (JEL) codes: F210, F430.

Hungarian export opportunities in the countries located along the routes of the New Silk Road


The New Silk Road has been China’s largest project ever, with the main goal of promoting economic development and networking in Asia, Europe and Africa. Today’s globalization, and the dramatic decline in specific transportation costs, as well as the development of railway technologies and the transformation of political structures, have once again put the construction of a “modern” Silk Road into the crosshairs of the Chinese state. Hungary has the potential to join the initiative through three railway lines. The report identified and proposed product groups and products for Hungarian exports to countries located along these railway lines. Thanks to the New Silk Road, and particularly to the development of rail transport, Hungary’s export structure could be transformed. The major conclusion of the paper is that domestic companies should focus mainly on agricultural, mechanical machinery, and pharmaceutical products, as they are perfectly suited to rail transportation in terms of both value/weight ratios and logistics. Journal of Economic Literature (JEL) codes: F13, F17, F21.

The digitization rate of Hungarian SMEs – could we then become ‘Digital Frontrunners’?


The study analyses the position of Hungarian SMEs in the European Union in terms of digital development, using McKinsey’s (2018a) conceptual framework of the digital development of EU * Brávácz Ibolya PhD, egyetemi adjunktus, Eötvös Loránd Tudományegyetem, Gazdaságtudományi Kar. E-mail: Bravacz.Ibolya@gtk.elte.hu Krebsz Rebeka, MSc Vállalkozásfejlesztés, projektmenedzser, Cognizant Technology Solutions Hungary Kft. E-mail: rebeka.krebsz@cognizant.com A kézirat első változata 2021. július 6-án érkezett szerkesztőségünkbe. https://doi.org/10.47630/KULG.2021.65.9-10.60 Külg. 9-10.indb 60 2021.11.08. 21:13:09 61 A magyar kis- és középvállalkozások digitális fejlettsége – Lehetünk-e… member states. The aim of the study is to test McKinsey’s (2018a) findings for Hungary based on data from secondary sources. The results show that the digital development level of Hungarian SMEs is still significantly below that of the most advanced EU member states and

the EU-28 average, and is only beginning to catch up with the latter. The paper refutes, refines and nuances the conclusions of McKinsey (2018a) for Hungary. Journal of Economic Literature (JEL) codes: O11, O33, F63.

The Anatomy of an Economic Catching-up The Korean puzzle – from hermit to cosmopolite (Akadémiai Kiadó, 2020, Budapest, 270 pages)


The article presents and analyses László Muraközy’s latest book. It covers two thousand years of economic history of the Korean peninsula, but focuses on the developments of the 20th century, with a special emphasis on the developmental state that emerged in the second half of the century. Following a brief introduction, the paper reviews the book chapter by chapter, not only providing a concise introduction to each chapter but also supplementing the chapters in several cases and pointing out shortcomings. Amongst these, it is worth mentioning that the democratisation processes of the 1980s and the consequences of the 1997/1998 financial crisis should have been discussed in greater detail in the book. Moving on to the present day, the role of SMEs and Foreign Direct Investment (FDI) in public industrial policy should also have been discussed, as they can be instruments of a developmental state adapted to globalisation. Journal of Economic Literature (JEL) codes: E6, F40, F52, F54, F63, G01, N00.

The development of the right to regulate and public exceptions in bilateral investment treaties


Bilateral Investment Treaties, or BITs, are extremely widespread worldwide and impose numerous obligations on contracting states. It has become a more and more frequent question in recent decades whether these treaties should contain provisions guaranteeing the states’ right to regulate, especially with regards to certain public interest measures, in light of the uncertain arbitral practice. And if there should be such a provision, its exact form and nature is still another question. The objective of this study was to examine the development of this right through certain highlightable BITs, dealing with both indirect and direct examples of the right to regulate. The result of the study is that it became possible for the author to create a developmental map of the concept, suggest a de lege ferenda recommendation on an ideal right to regulate and public exceptions provision, and draw conclusions with regards to the probable future. Journal of Economic Literature (JEL) code: K33.

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