Impact of FDI on economic growth, re-industrialisation and regional disparities in emerging Europe - the case of the Hungarian regions
by Zoltán Gál; Devesh Singh
International Journal of Business Excellence (IJBEX), Vol. 34, No. 3, 2024

Abstract: The paper examines the nexus of FDI inflow, the FDI dispersion among companies, and GDP per capita along with the selected socio-economic variables, and re-industrialisation in the Hungarian regions. The paper uses the NUT 3 level data from 2001 to 2018 and employs the generalised method of moments (GMM) in regions characterised by the different phases of industrialisation. The econometric analysis confirms three variations of bidirectional IFDI, GDP growth and FDI dispersion nexus which can be explained by the fact that the positive effect of FDI-driven growth is spatially concentrated according to the different regional patterns of industrialisation. Both the 'FDI-driven growth hypothesis' and the 'GDP growth-driven FDI hypothesis' have been confirmed under certain regional conditions. The results show that the FDI-driven growth model of CEE is not sufficient to ensure the long-term prosperity of regions since the positive effect of FDI-driven economic growth is only short-term and spatially concentrated, further exacerbating territorial inequalities.

Online publication date: Mon, 09-Dec-2024

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business Excellence (IJBEX):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com