DETUROPE - The Central European Journal of Regional Development and Tourism 2019, 11(3):250-263 | DOI: 10.32725/det.2019.036
In the decades, following the political transition more and more researchers started to study the Hungarian small towns because of the increasing number of settlements belonging to this category and their dominant role in the urban network. The literature studying the opportunities in foreign direct investment do not deal or only negligently deal with the effects of social and economic processes on the life of small towns. After reviewing the different approaches of location theories, we can get an overall picture in the relation of settlements and direct investment. This gives answers to the specific forms of direct investment flow and settling in East-Central Europe as well. Besides this, the presence of German minority as the indicator of the settling of direct investment is a missing segment of literature. This study presents the partial results of our research, which aims to complement this missing literature and studies the presence of German direct investment in the small towns of Hungarian settlement structure. It analyses the historical German-Hungarian relations, through which it describes the role of German minority in the economy and the settling of direct investments. The research studies the sectoral structure, the special pattern and it differentiates the importance of German direct investment with the help of data from the available databases (DUIHK25-member list and creditreform.hu - HVG TOP 500 enterprises), structured in-depth interviews (leaders of settlements, directors of companies and civilian organizations related to German minority) and regression analysis. The impact of foreign direct investment on social life, its role in living a life of a small town dweller and in obtaining the title of township are introduced by two short case studies. One of the settlements is Bonyhád, having one of the largest German minority and the other is Újhartyán, belonging to the outer ring of agglomeration of Budapest. Besides their favourable potentials the presence of German minority plays a crucial role in forming the economic and social life of these settlements. Our study shows the presence of German direct investment adjusting to the spatial structure of Hungarian economy and its sectoral differentiation is specific to a given region.
Published: October 31, 2019 Show citation
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