ECONOMIC GROWTH VERSUS ECONOMIC DEVELOPMENT

Abstract

In this article the author calls the attention to two very important components of economic growth and development not frequently discussed yet: innovation and legal security. Although elements of the paper´s approach can be found in international literature, moreover, there are theoretical arguments known in Hungary as well, importance of this view is rarely recognised. With the help of data from case studies, enterprise surveys, a simple regression model and a complicated macromodel, there is empirical evidence presented to support that a stable legal framework and innovation-friendly policies can have a substantial positive impact on Hungarian development and growth.