Author:
M. Szanyi Institute for World Economics, Hungarian Academy of Sciences, Országház u. 30, H-1014 Budapest, Hungary. E-mail: szanyi@econ.core.hu

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In international business practice, subcontracting is an unbalanced form of co-operation. It can bring serious negative effects for partners from less developed countries because of the strong onesided dependence on the “developed” partner. International experience, e.g. in the maquiladora region suggests that degradation of corporate activities, low profitability, technological dependence, loss of own production and shrinking market presence of own products may characterise many firms, and even whole industries or regions. These firms, regions and industries often become isolated from the national economy. Therefore, potential positive modernisation effects may also be “locked” in the subcontracting firm not spreading in the economy.

Hungarian experience with subcontracting was somewhat different already in the 1970s and 1980s. Companies concluded subcontracts with more developed Western partners in order to gain access to up-to-date technology and know-how, new markets and new products. Many of them incorporated the acquired knowledge with success. During the 1990s subcontracting was the driving force of corporate modernisation, since former development sources (primarily state subsidies) dried up. Many firms chose the new option of adjustment strategy. The efforts of Hungarian companies to integrate into the international division of labour coincided with the substantial change of subcontracting deals on world markets. Subcontracting became a form of outsourcing and changed to a long-term, network-type of co-operation form with considerable knowledge transfer.

This study presents the results of an empirical survey. The Department of Business Economics of the Budapest University of Economics and Public Administration carried out two rounds of interviews in more than 300 companies both in 1996 and 1999. The survey revealed some new features of international subcontracting patterns and found some evidence of modernisation impacts subcontracting has on Hungarian corporate strategies.

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Senior editors

Editors-in-Chief: István P. Székely, Dóra Győrffy

Editor(s): Judit Ványai

Associate Editors

  • Péter Benczúr, Joint Joint Research Center, European Commission
  • Dóra Benedek, International Monetary Fund
  • Balázs Égert, OECD
  • Dániel Prinz, World Bank
  • Rok Spruk, University of Ljubljana, School of Economics and Business, Slovenia

Editorial Board

  • Anders Åslund, Georgetown University and Advisory Council of CASE, USA
  • István Benczes, Corvinus University of Budapest, Hungary 
  • Agnieszka Chłoń-Domińczak, SGH Warsaw School of Economics, Poland
  • Fabrizio Coricelli, University of Siena, Italy
  • László Csaba, Corvinus University of Budapest, Hungary and Central European University, Austria
  • Beáta Farkas, Faculty of Economics and Business Administration, University of Szeged, Hungary
  • Péter Halmai, Budapest University of Technology and Economics, and National University of Public Service, Hungary
  • Martin Kahanec, Central European University, Austria
  • Michael Landesmann, The Vienna Institute for International Economic Studies (WIIW), Austria
  • Péter Mihályi, Corvinus University of Budapest, Hungary
  • Debora Revoltella, European Investment Bank

Corvinus University of Budapest
Department of Economics
Fővám tér 8 Budapest, H-1093, Hungary
E-mail: vanyai.judit@krtk.hu  

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2023  
Web of Science  
Journal Impact Factor 0.7
Rank by Impact Factor Q3 (Economics)
Journal Citation Indicator 0.23
Scopus  
CiteScore 1.4
CiteScore rank Q3 (Economics and Econometrics)
SNIP 0.385
Scimago  
SJR index 0.218
SJR Q rank Q4

Acta Oeconomica
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Acta Oeconomica
Language English
Size B5
Year of
Foundation
1966
Volumes
per Year
1
Issues
per Year
4
Founder Magyar Tudományos Akadémia
Founder's
Address
H-1051 Budapest, Hungary, Széchenyi István tér 9.
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Publisher
Chief Executive Officer, Akadémiai Kiadó
ISSN 0001-6373 (Print)
ISSN 1588-2659 (Online)

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