Foreign direct investment in Hungary: Theoretical implications in a globalized economy

The theoretical framework used to describe the effect of foreign investment on East Asian and Latin American developing economies cannot be used to analyze countries that are implementing a transition from a planned economy to a market economy. In this thesis, Hungary's relationship with foreign investment is analyzed in detail. As a result of the changing global economy, and domestic factors such as the role of the Hungarian state in the transition and the choice of an integration-oriented industrialization policy, modernization theory, dependency theory, and the theory of bargaining are unable to fully predict the effect of Hungary's relationship with foreign investment. By analyzing those aspects of Hungary's polity and economy that make it unique, the lessons learned from Hungary's experience with foreign investment can benefit other economies in transition.