A cautionary tale of two ‘tigers’: Industrial policy ‘lessons’ from Ireland and Hungary?

David Bailey, Helena Lenihan, Alex De Ruyter

Research output: Contribution to journalArticlepeer-review

Abstract

This paper draws industrial policy lessons for small Central and Eastern European states through a critical evaluation of recent Irish and Hungarian experiences. The paper outlines a ‘holistic view’ of industrial policy before exploring the experiences of the two economies. Whilst both have managed to ‘do’ policy well in some regards, substantial challenges remain in making foreign direct investment attraction the centrepiece of industrial policy, as has been highlighted recently. Overall, the paper suggests that wholesale emulation of the Irish and Hungarian approach is problematic for small open Central and Eastern Europe states, and that more balanced approaches to development – and hence industrial policy – are warranted.

Original languageEnglish
Pages (from-to)873-891
Number of pages19
JournalLocal Economy
Volume31
Issue number8
DOIs
Publication statusPublished - 1 Dec 2016
Externally publishedYes

Keywords

  • Central and Eastern Europe
  • Hungary
  • Ireland
  • foreign direct investment
  • industrial policy
  • policy evaluation

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