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Infrastructure Networks and the Competitiveness of the Economy

Fleischer, Tamás (2003): Infrastructure Networks and the Competitiveness of the Economy. Published in: Working Papers, Ministry of Finance of Hungary, Budapest , Vol. 2, (2003): 38p.

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Abstract

This paper aims to examine how technical infrastructure networks may contribute to improving the competitiveness of the Hungarian economy. Consequently, our main question will be to establish how certain networks or sectors can promote competitiveness of the entire economy rather than how they could be more competitive in their own field. In the macroeconomic or regional sense competitiveness is interpreted as the entirety of safeguards and preconditions that provide a long term basis for success in a competitive market environment. The review of the economic, social, institutional and facility preconditions of competitiveness has highlighted that practically every component must be backed by a good system of relations: both strong, balanced internal relations promoting co-operation and external relations to assure outward linkages. Despite the above correlation, it would be a fallacy to assume that infrastructure networks as linking elements in general are factors per se improving competitiveness. In accordance with the level of development of the economy, the key forms of activity and the realistically attainable objectives, different linkages and service needs become key for the development of the economy in different stages. [English translation for the whole paper see: http://real.mtak.hu/4063/4/fleischer_infrastructure-networks-and-the-competitiveness-of-the-economy_2003.pdf ]

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