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Voting for staying. Why didn’t the foreign-owned automotive component suppliers relocate their activity from Hungary to lower-wage countries as a response to the economic crisis?

Abstract : On the basis of interviews with 10 foreign-owned automobile component suppliers in Hungary and the collection of indirect information, this article explains why the multinationals did not relocate their activity from Hungary to lower-wage countries as a response to the economic crisis. We suggest that the four ‘keep factors of location’ – additional investments of the automobile manufacturers, unchanged labour market regulation, changes in government policy and the existence of few alternative sites of relocation – were more dominant than the two main ‘push factors of relocation’ – relatively low sunk costs and low dependence on the local environment.
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https://hal.univ-lorraine.fr/hal-01725230
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Submitted on : Wednesday, March 7, 2018 - 11:32:28 AM
Last modification on : Monday, February 14, 2022 - 3:32:36 PM

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Eric Rugraff, Magdolna Sass. Voting for staying. Why didn’t the foreign-owned automotive component suppliers relocate their activity from Hungary to lower-wage countries as a response to the economic crisis?. Post-Communist Economies, 2016, 28 (1), pp.16 - 33. ⟨10.1080/14631377.2015.1124552⟩. ⟨hal-01725230⟩

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