FDI and the Crisis of the World Economy in 2008 (A mukodo toke es a 2008. evi vilaggazdasagi valsag)
Kulgazdasag, Budapest, Vol. 53, Nos. 1-2, pp. 42-61, January-February 2009
20 Pages Posted: 29 Apr 2009
Date Written: March 11, 2009
2008 was marked by major changes in the world economy: the international integration based on money and capital markets fell into a deep crisis. This article examines how foreign direct investment - together with international trade - can replace those money and capital markets in the role of integrator of the world economy. It does not aim to provide an all-encompassing overview of future developments; nevertheless it analyses in detail to what degree foreign direct investment meets the requirements of being a stable phenomenon, to what degree its tendencies reflect the growing role of emerging economies and "Ricardian goods" in the global economy, and to what degree it is affected by the increasing role of States in economic affairs. An attempt is made at the end of the article to examine the challenges that foreign direct investment in Hungary faces during the current crisis and the opportunities it can gain from the current situation.
Note: Downloadable Document is in Hungarian.
Keywords: foreign direct investment, crisis, State ownership, Ricardian goods
JEL Classification: F21, F23, P20, E32
Suggested Citation: Suggested Citation