Tatabánya has been among the most successful Hungarian towns in attracting foreign direct investment (FDI), which now plays a determining role in its economy. Can already operating, foreign-owned firms, along with the attraction of new firms alleviate the negative economic consequences of the COVID pandemic? What other FDI-related policy options are available for the local government to handle the negative consequences of the crisis? This question is analysed based on publicly available information and interviews taken with representatives of the local government and industrial park. It shows that foreign-owned firms already operating in various industries and coming from numerous countries played a stabilising role during the crisis, especially in the labour market and local tax revenues, mainly because of the large-scale and diverse local FDI. However, this article also shows that local FDI is loosely embedded and shows limited signs of upgrading, thus its positive impact on Hungarian-owned local firms is limited.
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