Structural dynamic analysis of Hungary`s trade and economic cooperation with neighbouring states
Abstract. Cross-border trade and trade and economic cooperation with neighbouring countries has traditionally been recognized as both a driving force and an important consequence of cross-border cooperation. In the case of Hungary, which is used as the object of the study, the involvement of neighboring states into the single European market increases the common economic interests on both sides of the border and improves conditions for the implementation of the "neighbourhood policy» aiming at the implementation of joint projects and programs. This study provides a detailed analysis of the current situation and prospects of implementing the trade and economic cooperation of Hungary with neighboring states and the assessment of the role of the border factor in this process. Aiming to achieve this goal, the authors conducted a structural and dynamic analysis of the Hungarian foreign trade indicators: exports, imports of goods and services, the balance of foreign trade turnover and the ratio of import coverage by exports. The main conclusions based on statistical data are: the high degree of openness of the Hungarian economy and its dependence on the indicators of foreign trade, geographical concentration of trade and economic cooperation of Hungary, the effectiveness of national export support institutions.
Keywords: Hungary, neighbouring states, trade and economic cooperation, neighbourhood policy, export supporting institutions
Highlights:
♦ the strategic location in Europe, easy access to the EU markets, a highly skilled and educated labour force, and a reliable infrastructure make the Hungarian economy attractive to external trade partners and investors;
♦ the development of trade and economic relations between Hungary and neighbouring states has always been influenced by historical ties and geographical similarities of the territory and are currently being strengthened by a European integration processes within European regional cooperation programmes;
♦ in view of the high geographical concentration of Hungary`s foreign trade, Hungary`s economy is highly dependent on favourable international trade conditions and is highly susceptible to world economic crises.
Marina V. Kurnikova, Galina A. Khmeleva Samara State University of Economics, Samara, Russia; Balazs Istvan Toth - University of Sopron, Sopron, Hungary