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Next Steps in the Hungarian Economic Reform

  • Bela Balassa

Abstract

This essay will analyze the policies that may be employed to improve the performance of the Hungarian economy. After indicating the need for a restrictive macroeconomic policy and for the efficient promotion of exports, the essay will concentrate on the conditions existing in factor markets. Recommendations will be made for modifying the relative prices of labor and capital and improving the operation of markets for these productive factors in Hungary.

Keywords

Foreign Direct Investment Total Factor Productivity Investment Fund Socialist Country Soft Budget Constraint 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Notes

  1. 1.
    B. Balassa, ‘The Hungarian Economic Reform, 1968–82,’ Banca Nazionale del Lavoro Quarterly Review, XXXVI (1983) pp. 163–84 and Essay 12 in Bela Balassa Change and Challenge in the World Economy (London: Macmillan, 1985) pp. 261–8.Google Scholar
  2. B. Balassa, ‘The Hungarian Economic Reform, 1968–82,’ Banca Nazionale del Lavoro Quarterly Review, XXXVI (1983) pp. 163–84 and Essay 12 in Bela Balassa Change and Challenge in the World Economy (London: Macmillan, 1985) pp. 261–8.CrossRefGoogle Scholar
  3. 11.
    According to one author, ‘it is an error to assume that we can increase our export capacity by promoting exclusively export-oriented investments. The experience of the last several years indicates that such actions could help the situation of external equilibrium only for a short time. The permanent improvement of our [competitive] position is possible only through the overall improvement of conditions in our national economy.’ I. Barta, ‘A beruházási szféra feloldásra váró ellentmondásai’ (The Contradictions of the Investment Sphere Requiring a Solution), Kőzgazdasági Szemle (Economic Review), XXXXIII (1986) p. 840 (italics in the original).Google Scholar
  4. 12.
    L. Csernenszky, and K. Demeter, ‘A struktúra változása — a változás strukturája’ (Transformation of Structure and Structure of Transformation), Figyelő (Observer), 19 June 1986, p. 7.Google Scholar
  5. 13.
    M. Tardos, ‘A szabályozott piac kialakitásának feltételei’ (Conditions for the Development of a Regulated Market), Kőzgazdasági Szemle (Economic Review), XXXII (1985) pp. 1290–92.Google Scholar
  6. 15.
    A. Kunvári, ‘Miért jutott holtpontra beruházásaink jővedelmezősége?’ (Why has the Profitability of our Investments Reached the Zero Point?), Kőzgazdasági Szemle (Economic Review), XXXIII (1986) p. 828.Google Scholar
  7. 19.
    K. Gulyás, ‘Válás magyar módra’ (Divorce Hungarian Style), Figyelő (Observer), 18 September 1986, pp. 1, 6.Google Scholar
  8. 20.
    G. Révész, ‘Bérezés an 1980-as évek Magyarországán’ (Wage Setting in the Hungary of the 1980s), Kőzgazdasági Szemle (Economic Review), XXXIII (1986) pp. 809–24.Google Scholar
  9. 21.
    This point is made in O. Pirityi, ‘Viszaforditható-e a folyamat?’ (Could One Reverse the Tendency?), Figyelő (Observer), 6 March 1986, p. 5.Google Scholar
  10. 25.
    Z. Nádudvari, ‘Számvezérlésű szerszámgépek. Fejlett technika-félállásban’ (Numerically-Controlled Machine Tools. Developed Technology-Halfway), Figyelő (Observer), 16 October 1986, p. 7.Google Scholar
  11. 30.
    W. V. Chandler, ‘The Changing Role of Market in National Economies,’ Worldwatch Paper 72 (Washington, DC; Worldwatch Institute, 1986) Table 2.Google Scholar
  12. 40.
    E. Várhegyi, ‘Utolsó pár előre fuss?’ (From Last to be First), Figyelő (Observer), 4 December 1986, p. 5. As discussed further below this has meant promoting large firms of low profitability.Google Scholar
  13. 43.
    G. Lamberger, E. Szalai, and E. Voszka, ‘Válságkezelés és vállalalatmegszűntetések’ (Crisis Management and the Closing Down of Firms), Valóság (Reality), XXIX (1986) pp. 24–31.Google Scholar
  14. 45.
    M. Laki, ‘A gazdaságirányitós ésa vállalati valság’ (The Guidance of the National Economy and Level Crisis), Kűlgazdaság (External Economy), XXIX (1985) pp. 41–58.Google Scholar
  15. 47.
    G. Varga, ‘Tiszta vizet a pohárba’ (Put Clear Water in the Glass), Figyelő (Observer), 20 March 1986, p. 3.Google Scholar
  16. 49.
    For perceptive analyses, see Tardos and J. Bársony, ‘A vagyonérdekeltség kialakitásának problémái’ (Problems Related to Interest in Enterprise Property), Kőzgazdasági Szemle (Economic Review), XXXIII (1986) pp. 435–53.Google Scholar

Copyright information

© Bela Balassa 1989

Authors and Affiliations

  • Bela Balassa
    • 1
    • 2
  1. 1.The Johns Hopkins UniversityUSA
  2. 2.The World BankUSA

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