Related Variety and Regional Growth in Hungary: Towards a Transition Economy Approach

25 Pages Posted: 6 Nov 2013

See all articles by Balázs Lengyel

Balázs Lengyel

Hungarian Academy of Sciences (HAS) - Institute of Economics CERS-HAS (IEHAS); International Business School - Budapest (IBS)

Izabella Szakálné Kanó

University of Szeged

Date Written: November 5, 2013

Abstract

The aim of this paper is to adapt related variety calculations to the special case of Hungarian regional development in the late post-socialist transition period. First, we test regional employment growth in rising and declining regions separately, in order to distinguish those areas that could cope with economic transition and those that could not. We find that related variety speeded up growth in the dynamic regions but at the same time pushed lagging regions to a downhill path that might be due to their unflexible industry structure. Second, regional variety measures are decomposed into domestic and foreign subsets and a new variable, ownership variety is introduced. Findings suggest that regional employment growth is due to related variety in the domestic set in earlier phases whereas the economy has evolved into a stage in which relatedness among foreign firms enhances regional employment growth significantly.

Keywords: related variety, regional employment growth, foreign-owned firms, post-socialist transition

JEL Classification: J61, L16, O18, O47, P25, R11

Suggested Citation

Lengyel, Balázs and Szakálné Kanó, Izabella, Related Variety and Regional Growth in Hungary: Towards a Transition Economy Approach (November 5, 2013). Available at SSRN: https://ssrn.com/abstract=2350214 or http://dx.doi.org/10.2139/ssrn.2350214

Balázs Lengyel (Contact Author)

Hungarian Academy of Sciences (HAS) - Institute of Economics CERS-HAS (IEHAS) ( email )

Budaorsi ut 45
Budapest, 1112
Hungary

International Business School - Budapest (IBS) ( email )

Záhony utca 7.
Budapest, 1031
Hungary

Izabella Szakálné Kanó

University of Szeged ( email )

P.O. Box 652
Szeged, H-6701
Hungary

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
60
Abstract Views
441
rank
437,344
PlumX Metrics