Sass, Magdolna (2010) Foreign Direct Investments and Relocations in Business Services – What are the Locational Factors? The Case of Hungary. [Working Paper or Technical Report]
Official URL: http://eprints.ucm.es/10380
Hungary became host to various business services through relocations of these activities from other,
higher cost locations, especially from Western Europe and through opening up new capacities. Locational
advantages determine which countries are chosen as hosts to new or relocated service centres.
For the case of Hungary, the analysis is carried out on the basis of eight detailed company case studies
(this number is expected to increase to ten). The majority of these is vertical FDI (close to 100 % of
export/sales ratio), and two companies represent a confluential case of vertical and horizontal (domestic
market oriented) FDI, where sales to the domestic market are also important, though not dominating.
The paper’s main aim is to make an attempt at contributing to filling some gaps in the literature, in
terms of analysing locational advantages for vertical FDI in services, specifically in business services. It
shows that locational advantages, taken into consideration by vertical and horizontal FDI differ from
each other to a great extent. It identifies the various elements of locational advantages connected to the
different elements of investment motives, in terms of cost reduction, reducing costs of disintegration of
production, reducing other costs, and motives arising from the confluence of vertical and horizontal
FDI, and the paper relates these elements to the specificities of the business services sector.
|Item Type:||Working Paper or Technical Report|
|Uncontrolled Keywords:||Offshore outsourcing, Business services, Locational advantages, Hungary, East Central Europe.|
|Subjects:||Social sciences > Economics > Economic integration|
Social sciences > Economics > World economy
Social sciences > Economics > Industrial organization
|Series Name:||Working Papers|
Barba Navaretti, G.; A.J. Venables (2004) Multinational Firms in the World Economy. PrincetonUniversity Press.
Bardhan, A.D.; C. A. Kroll( 2003) The New Wave of Outsourcing. Fisher Center Research Reports Paper1103. University of California, Berkeley.
Bajmócy Z. (2007): Tudás-intenzív üzleti szolgáltatások és a lisszaboni innovációs célkit zés. (Knowledgeintensive business services and the Lisbon innovation aims.) In Farkas B. (ed.): A lisszaboni folyamat ésMagyarország. SZTE Gazdaságtudományi Kar Közleményei, JATEPress, Szeged, pp.154-170.
Caves, R.E. (2007) Multinational Enterprise and Economic Analysis. Third Edition. Cambridge UniversityPress.
Chakrabarty, S. (2006) Making Sense of the Sourcing and Shoring Maze: The Various Outsourcing&Offshoring Alternatives. In H.S. Kehal, & V.P. Singh (Eds.), Outsourcing and Offshoring in the 21st Century.A socio economic perspective, 1 ed.: 18-53, Herhsey, PA: IGI Publishing.
Clark W. S. (2000) Corporate Tax Incentives for Foreign Direct Investment (Main Types, Potential Effectsand Design Considerations). Paper, prepared for the Seminar on Foreign Direct Investment and PrivatisationPolicies. Vienna, 5-9 June, 2000.
Dicken, P. (2003) Global Shift. Reshaping the global economic map in the 21st century. Fourth ed., Sagepublications.
Dunning, J.H. (1996) Foreign Direct Investment and Governments. Routledges: New York.
Dunning, H. J. (1993) Multinational Enterprises and the Global Economy. Addison Wesley.
Francois, J.; B. Hoekman (2009) Services Trade and Policy. Working Paper No. 0903, March 2009. Departmentof Economics, Johannes Kepler University of Linz.
Gál Z. (2007) Future Bangalores? Role of offshoring in the financial centre formation in the major CentralEastern European cities. In: Second Global Conference on Economic Geography, Beijing. Abstract Book. Ed.L. Weidong. Beijing: Chinese Academy of Science Department of Geography, 2007. 61–62. p.http://courses.nus.edu.sg/course/geoywc/conference/2007%20EconGeog%20Folder/2007%20SGCEG%20Book_small.pdf
Gál, Z. (2009) „Future Bangalores? The increasing role of Central and Eastern Europe in services offshoring”Regional Studies (forthcoming).
Ghibutiu A., Dumitriu I. (2008) The Effects of Offshoring on Trade in Services.Evidence from Romania.ETSG Working Paper. http://www.etsg.org/etsg_web/etsg_site/papers_detail.php?id=91
Hamar J. (2005) Üzleti szolgáltatások Magyarországon. Közgazdasági Szemle, LII., November, pp. 881-910.
Hansen, M.W.; H. Schaumburg-Müller; E. Potter (2007) Outsourcing for development. CBDS Working PaperSeries, Working Paper No. 4, October, 2007.
Harding, T.; B. Smarzynska-Javorcik (2007) Developing economies and international investors: do investmentpromotion agencies bring them together? CEPR Discussion Paper no. 6418. August 2007.
Hassett, K. A.; Hubbard, R.G. (1998) Are investment incentives blunted by changes in prices of capitalgoods? International Finance, 1, pp. 103-125.
Haveman, J.D. and Schatz, H.J. 2004. Services Offshoring: Background and Implications for California.Public Policy Institute of California (Aug.).
Hollinshead, G. (2008) Offshoring in the financial sector. Presentation at the project meeting „Foreign DirectInvestment in Central and Eastern Europe: What Kind of Competitiveness for the Visegrad Four?”, Hatfield8-10 February 2008.19
Hunya, G., M. Sass (2005) Coming and Going: Gains and Losses from Relocations Effecting Hungary. WIIWResearch Reports.
Jensen, P.D.O.; J.F. Kirkegaard, N.S. Laugesen (2006) Offshoring in Europe – Evidence of a Tweo-WayStreet from Denmark. Institute for International Economics, Working Paper Series, WP 06-3, June 2006.
Kirkegaard, Jacob Funk (2005), “Outsourcing and Offshoring: Pushing the European Model Over the Hill,Rather Than Off the Cliff!” Institute for International Studies, Working Paper WP05-1, Washington.
Lindner, A.; B. Cave, L. Deloumeaux, J. Magdeleine (2001) Trade in Goods and Services: Statistical Trendsand Measurement Challenges. OECD Statistics Brief October 2001, No. 1.
Metters, R.; R. Verma (2007) History of offshoring knowledge services. Journal of Operations Management.26 (2008) 141–147.
Netland, T.H.; E. Alfnes (2007) Internationalisation of professional services – A 1999-2005 literature review.College of Service Operations 2007 Conference, 12-13th July 2007.
Sass M. (2008a) Szolgáltatások relokációja – európai folyamatok. (Relocation of services – European developments).Európai Tükör.
Sass M. (2008b) Case studies – Hungary. Presentation at the project meeting „Foreign Direct Investment inCentral and Eastern Europe: What Kind of Competitiveness for the Visegrad Four?”, Hatfield 8-10 February2008.
Sass M. (2009) The new role of East Central European Countries in the international division of labour inservices: methodological problems. Manuscript.
Sturgeon, T.J.; F. Levy; C. Brown; J.B. Jensen; D. Weil (2006) Why Can’t We Measure the Economic Effectsof Services Offshoring: The Data Gaps and How to Fill Them. Services Offshoring Working Group FinalReport. Industrial Performance Center, Massachusets Institute of Technology.web.mit.edu/ipc/publications/papers.html
Taylor Ch. T.(2000) The Impact of Host Country Government Policy on US Multinational Investment Decisions.World Economy, 23 (5), 635.-648.
UNCTAD (2004) World Investment Report, 2004, The Shift Towards Services, UNCTAD, Geneva.
|Deposited On:||26 Mar 2010 08:20|
|Last Modified:||06 Feb 2014 08:42|
Repository Staff Only: item control page