Foreign trade relations of Hungary with China: A global value chain perspective

Abstract

Trade analysis for open economies is strategically important. Even though Hungarian trade relations are oriented towards the EU, the direct and indirect influence of Asia, mainly China, needs special attention. The paper focuses on direct bilateral relations between Hungary and China. The global value chain perspective enables the research to detect inter- and intra-industry dependencies and unfold and compare the industry focuses and dynamics of backward and forward linkages between 2000 and 2018. We used a mixed methodology, combining input-output analysis with company case studies based on a wide range of literature both from Chinese and East-Central European researchers. The findings support the significance of global value chain relations, highlight the restructuring of Hungarian trade relations with China over the past twenty years, and indicate the strong concentration of relations in terms of the number of companies.