ON SOME MACROECONOMIC EFFECTS OF FDI IN HUNGARY

Abstract

The author tries to analyse some macroeconomic effects of the Foreign Direct Investment (FDI). Usually the quick capital inflow immediately effect on balance of payment. It can improve the balance, reduce its deficit without the change in the balance of trade. In Hungary the estimated share of the equipment and other assets in FDI is 20%. It may cause deficit in the balance of trade through the import-increasing effects. The author examines also the sectoral target and enterprise's structure of the Foreign Direct Investment.