2010 Reports

Outward FDI from Hungary and its policy context

Sass, Magdolna; Kalotay, Kalman

Outward foreign direct investment (OFDI) from Hungary has weathered the current crisis relatively well, although its volume is still moderate for a country classified as "high income"—but not necessarily if compared with other new European Union (EU) members. The Hungarian OFDI stock is highly concentrated in five big companies. Government policy has so far focused more on a vigorous promotion of inward FDI than on helping outward investors. However, it sometimes protects strategic Hungarian OFDI firms from hostile takeovers. The main question for the future of Hungarian OFDI is how its sustainability can be assured, especially by way of broadening the company base of capital exporters.