The ICT manufacturing sector in Hungary

Sass Magdolna

Sujets

• Économie
• Economy

Informations

• Publié par: paul.vallen
• Nombre de lectures: 17
• Langue: English

Extrait

The ICT manufacturing sector in Hungary

Magdolna Sass

Institute of Economics of the

Hungarian Academy of Sciences and ICEG European Center

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Problems with identifying ICT manufacturing and data availability

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ICT manufacturing in Hungary – basic facts

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Dynamic growth

Regional leader

The determining role of FDI (relocation)

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25

20

15

10

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Share of Electronics and subsectors in total manufacturing output

Output at constant (1992) prices

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Romania

Other CEE countries

Share in ICT manufacturing output of the region in 2002

5

Hungary

Poland

Czech Republic

Russia

%)

0

re (Sah

40

35

30

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% 20

15

10

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80

70 p e 60 r   50 c e n 40 t 30

100

90

0

Gross value Employment Number of Own capital Subscribed Sales Labour costs Trading Entreprenurial After tax added units capital profit/losses profit/losses profit/losses

20

10

irgn i    nuHgnray in ICT manufactu Sahn-owreigf fore o

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Why Hungary?

Open to FDI (both wide sense and narrow sense incentives and privatisation to foreigners) IFTZ-regulation up till EU-membership- unique (esp. favourable for export-oriented scale- intensive assembling operations) Availability of (un-, semi and) skilled and relatively cheap workforce (privatisation and bankruptcy of SOEs) Geographic proximity Traditions (for example Tungsram, Videoton)

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Extent of ICT

The majority of production and export is a result of relocation through FDI and OPT (role of companies with foreign participation) Production: magnitude: per capita ICT production: Hungary: 0.8 million USD, EU: 0.6 million USD; Share in world production: 0.8 % (2002, EU-15: ~20 %) Export: share in world export (2002) in leading products: Telecom appliances and parts: 2.4 % (EU-15: 41%), Computers and parts: 1.5 % (EU- 15: 27.3%), Television receivers: 2.2 % (EU-15: 16.5%)

Further characteristics of the ICT manufacturing sector in Hungary

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Concentration (few products, few big producers, few export products, regional concentration)

Export-orientation + most dynamic export growth + most important export products

Low local value-added –growing?

Little linkages

Foreign dominated

Further relocations –upgrading?

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Concentration

Few products: top ten products represent more than 1/3 of production (DL) Few producers: 1. own brands: Philips, GE, Samsung, Sanmina-SCI, Electrolux, Sanyo, Sony, Nokia, Siemens, Ericsson, IBM; 2. contract manufacturers: Flextronics, Solectron, Elcoteq (+ Hungrarian: Videoton, Orion, Hajdú) Few export products: top ten products represent 40 per cent of DL exports Regional concentration of production: Central and North- Western regions of the country (however, more dispersed than the automotive sector)

120

100

80

60

40

20

0

Role in exports 1 Strong export orientation

1992

1998

Export/sales (%)

2004

Manufacturing 30 - Office machinery 31- Other electrical machinery 32 - Communication equipment 33 - Medical, precision, optical instruments