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Foreign Direct Investment in Spain and Hungary. Edition No. 1
VDM Publishing House, July 2008, Pages: 120
The inflow of foreign direct investment to Spain and Hungary following economic liberalisation has been remarkable. This book analyses the FDI-driven modernisation of Hungary and Spain in the nineties. Similarities and differences in the motivations of foreign investors are analyzed and performance and efficiency indicators of foreign investment enterprises as well as their effects on the economy are discussed in detail. The book further analyzes change in the foreign trade structure and the extent to which FDI has induced this change. Revealed comparative advantage as well as horizontal and vertical intra-industry trade indices are calculated for both countries and then grouped according to the technology intensity of the manufacturing sector. The effect of FDI on foreign trade is found to be much stronger in the case of Hungary than in Spain, resulting in a strong shift towards high-tech trade. Recent trends in the current decade are also briefly discussed. This book may be useful for those who are interested in the effects of FDI on Hungary and Spain's integration into the EU.
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