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The Outward Focused Development Path in the Visegrad Countries

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  • Bartha, Zoltán
  • S. Gubik, Andrea

Abstract

The aim of this chapter is to describe how the macroeconomic development path taken by the Visegrad countries affects the internationalisation process of their domestic companies. The macroeconomic development paths are derived with the FOI model (focusing on the future, outside and inside potentials of the developed economies). The FOI-indices are calculated for all 34 OECD members, and then a factor and cluster analysis is conducted, with the help of which it is identified that the Visegrad countries have all chosen an outward focused development path. This development path involves the heavy reliance on outside resources, and forces the domestic firms to face tough international competition even in local markets. The outward focus of a country’s development strategy therefore should help local enterprises in becoming more competitive. Yet, this strategy usually result in a dual structure, where a good portion of the local businesses are characterised with a low level of competitiveness, and have very little chance of going international.

Suggested Citation

  • Bartha, Zoltán & S. Gubik, Andrea, 2014. "The Outward Focused Development Path in the Visegrad Countries," MPRA Paper 57213, University Library of Munich, Germany, revised 19 Jun 2014.
    • Handle: RePEc:pra:mprapa:57213
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    References listed on IDEAS

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    Cited by:

    1. Klára Szita Tóthné, 2014. "Green Growth in the OECD: State of the Art," Theory Methodology Practice (TMP), Faculty of Economics, University of Miskolc, vol. 10(02), pages 59-65.
    2. Agnes Szunomar (ed.), 2014. "Chinese investments and financial engagement in Visegrad countries - Myth or reality?," Economic books, Institute for World Economics - Centre for Economic and Regional Studies, number 201411.
    3. repec:prg:jnlpep:v:preprint:id:639:p:1-19 is not listed on IDEAS
    4. Iryna Gauger & Katarzyna Sledziewska, 2018. "Is a Model of Comprehensive Regionalism Trade-Increasing for V4 Countries? Sectoral Approach," Prague Economic Papers, Prague University of Economics and Business, vol. 2018(1), pages 21-39.

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    More about this item

    Keywords

    development factors; FOI model; Visegrad countries;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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