Foreign direct investment in Hungary

Competition for scarce investment resources is fierce worldwide. The balance-sheet of foreign direct investments (FDI) in Hungary is compared with that of the three other Visegrad countries, and found to be quite positive. This can be considered as Hungary's greatest success since it has changed its economic and political system. After analysing the factors stimulating or impeding FDI, an explanation is provided for the attraction Hungary exercises on foreign investors. A few recommendations are then made for mid-and long-term economic policy.