Geographia Polonica (2007) vol. 80, iss. 1

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The Impacts of Relocation on the Spatial Pattern to Hungarian Industry

Eva Kiss

Geographia Polonica (2007) vol. 80, iss. 1, pp. 42-62

Abstract

In the post-communist countries the phenomenon of relocation has only become commonrecently. The main purposes of the study are thus to demonstrate the major characteristicsof relocation to and from Hungarian industry and to reveal its spatial impacts, i.e. the waysin which relocation has affected the post-communist spatial pattern formed for industry in the1990s. The study also examines how relocation and reorganization of production were achievedat a transnational company (Flextronics), as well as the spatial and structural consequences of thechanges. Of all the post-communist countries, Hungary forms one of the most important targetsfor relocation due to its favourable geographical location. In spite of this, the relocation notedto date has not been very intensive, and has not therefore affected the new spatial pattern of industrymuch either. In the long run, however, relocation can become more intensive and that canlead to relevant changes in the spatial pattern displayed by Hungarian industry.

Keywords: relocation, FDI, industry, Hungary

Eva Kiss, Geographical Research Institute, Hungarian Academy of Sciences, 1112. Budapest, Budaörsi út 45, Hungary