Measuring slowbalisation through the analysis of the Hungarian economy
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| Format: | Thesis |
| Kulcsszavak: | 2008 global financial crisis analysis of the Hungarian economy deglobalisation dynamics of trade and FDI flows globalisation interconnectedness among national economies slowbalisation |
| Online Access: | http://dolgozattar.uni-bge.hu/38502 |
| Abstract: | Abstract: Measuring slowbalisation through the analysis of the Hungarian economy The interconnectedness among national economies can either accelerate (globalisation), stagnate (slowbalisation) or decelerate (deglobalisation), but it is unclear which trend is the present one. The study aims to prove that the current trend is slowbalisation since the 2008 global financial crisis through analysing the Hungarian economy. In the first part of the analysis, it is demonstrated that Hungary is a sufficient sample to observe the dominant trend regarding the changing interdependency among national economies. Assessing the country’s openness toward trade and FDI, thus its high GVC participation index approves the Hungarian economy’s role as a representative sample for the investigation. The economic indicators of the country connected to trade and FDI can capture the global trend of interrelatedness among national economies, since they are highly affected by it. In the second part of the analysis, the hypothesis is tested, stating that due to the stagnating interconnectedness with other national economies, Hungary’s trade and FDI growth has been slowed down since the global financial crisis. Therefore, the dynamics of trade and FDI of the Hungarian economy are analysed between 1991-2007 and 2008-2020, accessing the pre-crisis and after-crisis periods. The intensity of the country’s economic globalisation index, the yearly changes of the trade-to-GDP ratio, thus the annual growth of export, -import, -FDI inflow and -FDI outflow are compared prior and following the 2008 global financial crisis intending to determine the slowdown in the market integration with other national economies. The results of the study confirm the assumption of the slowdown in market integrations, since the majority of the examined economic indicators have revealed a smaller growth after the global financial crisis. On this basis, the slowbalisation, so the stagnation of interconnectedness among national economies is accepted as the currently dominant trend. |
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