Transformation and catching-up issues in Hungary — From a network alignment perspective

A. Szalavetz

doi:10.1556/aoecon.60.2010.2.4

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Acta Oeconomica

Volume/Issue:: Volume 60: Issue 2

Transformation and catching-up issues in Hungary — From a network alignment perspective

Author:

A. Szalavetz

A. Szalavetz Institute of World Economics of the Hungarian Academy of Sciences Országház u. 30 H-1014 Budapest Hungary

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Pages:: 197–216

Online Publication Date:: 25 May 2010

Publication Date:: 01 Jun 2010

Article Category:: Journal Article

DOI:: https://doi.org/10.1556/aoecon.60.2010.2.4

Keywords:: networks; disorganisation; policy misalignment; weak ties; unintended consequences; D70; D85; H11; H73; P20; P31

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Awareness about the growing role of networks in economic activity keeps rapidly increasing as reflected by the number of publications in international academic literature. This literature is, however, concerned with the advantages of network-based cooperation, while analyses of network failure and inferior-to-expectations outcomes remain scarce. This paper adds to the accumulating evidence that network formation and network integration are no panacea: similarly to the much-researched and analysed phenomena of market failure or government (state) failure, there is such thing as network failure .Combining theoretical arguments with Hungarian fieldwork experience originating from the author’s past investigations, cases of network failure and network misalignment both within the innovation system and within producer networks are examined. Another focus of this paper is institutional and policy (mis)alignment, i.e. the question, how the institutional set-up facilitates or works against achieving developmental goals in Hungary. We claim that though networks have an impact on development outcomes, the effectiveness of networks, i.e. their developmental role and the value of network ties are continuously shaped by network actors’ capabilities and behaviour.

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Acta Oeconomica Periodical of the Hungarian Academy of Sciences

Print ISSN:: 0001-6373

Online ISSN:: 1588-2659

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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: judit.kalman@uni-corvinus.hu

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Acta Oeconomica
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