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eKonferencije.com: Futures of V4 governments

Futures of V4 governments

1. Tamás Nógrádi

The flow, observation and measurement of functioning capital, and the conclusions drawn from the quantitative indices receive accentuated attention not only in terms of professional public opinion, but also the attention of the shapers of economic policy. The coherences seem trivial: if functioning capital enters a country, it may accelerate the demand on the labour market and therefore the employment rates due to fulfilled investments; the products manufactured with the aid of foreign capital expand the output and export of the given country while generating revenue tariff for the governments and improving the balance of payments position, without having to consume the available internal financial sources and without increasing external debt. However, it can be determined that the expansive effect on output of functioning capital entering the country differs in sectors, on employment and thus on revenue tariffs as well. Hence the distribution of foreign functioning capital entering the country between sectors is not of little importance to economic policy; therefore the governments of our region cannot disregard the fierce competition for attracting capital between continents and countries. The existence or lack of material infrastructure, the qualitative characteristics of the institutions are equally important to the foreign investor, but the rapid development of technological standards makes labour force indispensable that not only has to be inexpensive but also needs to comply with the educational expectations. In our study we aim to analyse the processing industry of the countries of Visegrád, with a special focus on the vehicular industry regarding the past processes of the inflow of functioning capital; the privatisation of the sector and the greenbelt investments in countries with different aptitudes in vehicular industry at the time of the end of the communism and the effects on macroeconomic processes are also in the centre of analysis. In our view, the investigation of these processes may be of utter importance in relation to our future. The main issue is the sort of tasks the governments have to complete in an attempt to insinuate themselves into favour of the investors of competitive technologies with high added value; in order to maintain the attractive quality of the region in terms of capital investments beyond the service industry, in the processing industry as well, which creates more significant employment. In our study, we look for answers to these issues!

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Датум: 20.11.2013.

REDETE 2014 - Researching Economic Development and Entrepreneurship in Transition Economies

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