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Could The Irish Miracle Be Repeated in Hungary?

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Listed:
  • Zoltan Acs
  • Colm O'Gorman
  • Laszlo Szerb
  • Siri Terjesen

Abstract

It is widely recognized that foreign direct investment (FDI) plays an important role in economic development. Internationalization theory is used to explore how inward FDI impacts entrepreneurial activity. Using data from the Global Entrepreneurship Monitor we find significant differences in entrepreneurial activity between Ireland and Hungary in both the type of people starting businesses and the opportunities pursued. These results suggest that economic development policies for middle-income countries, like Hungary, should focus on increasing human capital, promote enterprise development, and upgrading the quality of FDI.

Suggested Citation

  • Zoltan Acs & Colm O'Gorman & Laszlo Szerb & Siri Terjesen, 2006. "Could The Irish Miracle Be Repeated in Hungary?," Papers on Entrepreneurship, Growth and Public Policy 2005-33, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    • Handle: RePEc:esi:egpdis:2005-33
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    References listed on IDEAS

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    1. Zoltan J. Acs & Attila Varga, 2008. "Entrepreneurship, Agglomeration and Technological Change," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 24, pages 341-352, Edward Elgar Publishing.
    2. Morck, Randall & Yeung, Bernard, 1991. "Why Investors Value Multinationality," The Journal of Business, University of Chicago Press, vol. 64(2), pages 165-187, April.
    3. Holger Gorg & Frances Ruane, 2001. "Multinational Companies and Linkages: Panel-Data Evidence for the Irish Electronics Sector," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(1), pages 1-18.
    4. O'Malley, Eoin, 2004. "Competitive Performance in Irish Industry," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI), vol. 2004(4-Winter), pages 66-101.
    5. Gábor Békés, 2005. "Location of manufacturing FDI in Hungary: How important are inter-company relationships?," MNB Working Papers 2005/07, Magyar Nemzeti Bank (Central Bank of Hungary).
    6. Holger Görg & Eric Strobl, 2016. "Multinational companies and indigenous development: An empirical analysis," World Scientific Book Chapters, in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT, chapter 17, pages 305-322, World Scientific Publishing Co. Pte. Ltd..
    7. Barry, Frank, 2004. "Export-platform foreign direct investment: the Irish experience," EIB Papers 6/2004, European Investment Bank, Economics Department.
    8. repec:fth:michin:282 is not listed on IDEAS
    9. Zoltan J. Acs & Siri Terjesen, 2007. "Born Local: Two Avenues to Internationalization," Jena Economics Research Papers 2007-022, Friedrich-Schiller-University Jena.
    10. Bates, Timothy, 1990. "Entrepreneur Human Capital Inputs and Small Business Longevity," The Review of Economics and Statistics, MIT Press, vol. 72(4), pages 551-559, November.
    11. Zoltan J. Acs & Randall K. Morck & Bernard Yeung, 2008. "Entrepreneurship, Globalization and Public Policy," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 30, pages 430-446, Edward Elgar Publishing.
    12. Kalotay, Kálmán, 2003. "Mûködõtõke - válságban? [Foreign direct investment - in crisis?]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 35-55.
    13. Robert E. Lucas Jr., 1978. "On the Size Distribution of Business Firms," Bell Journal of Economics, The RAND Corporation, vol. 9(2), pages 508-523, Autumn.
    14. Colm O'Gorman & Siri Terjesen, 2005. "Financing the Celtic Tigress: Venture financing and informal investment in Ireland," Venture Capital, Taylor & Francis Journals, vol. 8(1), pages 69-88, September.
    15. Hector Rocha & Rolf Sternberg, 2005. "Entrepreneurship: The Role of Clusters Theoretical Perspectives and Empirical Evidence from Germany," Small Business Economics, Springer, vol. 24(3), pages 267-292, February.
    16. Sass, Magdolna, 2004. "FDI in Hungary - the first mover's advantage and disadvantage," EIB Papers 8/2004, European Investment Bank, Economics Department.
    17. Attila Varga & Hans Schalk, 2004. "Knowledge Spillovers, Agglomeration and Macroeconomic Growth: An Empirical Approach," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 977-989.
    18. Zoltan Acs & Laszlo Szerb, 2007. "Entrepreneurship, Economic Growth and Public Policy," Small Business Economics, Springer, vol. 28(2), pages 109-122, March.
    19. Giorgio Barba Navaretti & Anthony J. Venables, 2006. "Multinational Firms in the World Economy," Economics Books, Princeton University Press, edition 1, volume 1, number 7832.
    20. Rolf Sternberg & Sander Wennekers, 2005. "Determinants and Effects of New Business Creation Using Global Entrepreneurship Monitor Data," Small Business Economics, Springer, vol. 24(3), pages 193-203, January.
    21. Morck, Randall & Yeung, Bernard, 1992. "Internalization : An event study test," Journal of International Economics, Elsevier, vol. 33(1-2), pages 41-56, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Entrepreneurial Activity; GEM; Economic Development; Entrepreneurs; Foreign Direct Investment; Knowledge Spillovers; Ireland; Hungary;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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