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 FDI 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 CEE states, and that more balanced approaches to development - and hence industrial policy – are warranted.
Bibliographical noteFunding: EU Horizon 2020 project MAKERS – Smart Manufacturing for EU growth and prosperity, a project funded by the Horizon 2020 Research and Innovation Staff Exchange Programme, under the Marie Sklodowska-Curie Actions (691192).
- Central and Eastern Europe
- industrial policy
- foreign direct investment
- policy evaluation
Bailey, D., Lenihan, H., & de Ruyter, A. (2016). A cautionary tale of two ‘tigers’: Industrial policy ‘lessons’ from Ireland and Hungary? Local Economy, 3(8), 873-891. https://doi.org/10.1177/0269094216677779