An Assessment of Foreign Direct Investment Opportunities in Hungary

Abstract

In this paper, we analyze Hungary's economic environment and locational factors, and their relevance to managers considering foreign direct investment in Hungary. Our findings suggest that, among Eastern European countries, Hungary is rightly the preferred location for foreign direct investment. In particular, Hungary currently offers excellent opportunities for firms attempting to use the country as an export platform and to firms aiming at improving their cost position. Over the longer term, we expect manufacturing firms in the high-end export markets to perform the best.