Industrial value chain length and territorial concentration, January 2026
Released: 29 April 2026
Hungary’s industrial output grew steadily in the 2010s. Although this dynamism was temporarily broken by the pandemic, production volume surpassed in 2021–2022 the pre-pandemic peak. However, the 2023 and 2024 industrial output of Hungary, as those of most EU countries, decreased.
The territorial concentration of production grew in Hungary after 2021 – contrary to the previous decreasing trend. Despite all these, it remains lower than the EU average, and output is less tied to one single county or subsection.
The gross value added to output rate of the Hungarian industrial sector was 25.4% in 2024. The value chain length remained mainly unchanged over the past ten years, up until 2021, when slightly decreased, then in 2022 more significantly – below 21% –, from 2023 grew once again. Behind this latter change stands the so-called composition effect, i.e. output shifted towards sections with higher value added. The value chain length change – albeit at a different level than in Hungary – underwent a similar process in the Visegrad countries and Germany, too. The gross value added to output rate in the past year in Hungary differed significantly by industrial subsections, ranging between 15.7% (manufacture of chemicals and chemical products) and 54.8% (mining). The value chain length in several cases is shorter than the average, mainly in the subsections representing a greater weight in terms of production (production of road vehicles, food industry, production of electrical equipment, and production of computers, electronics, and optical products can be highlighted; the combined industrial output proportion of these four subsections being 39%).
The development of the domestic value chain length continues to be significantly impacted by the import demand of output, higher in the case of sections with a greater weight in production. This can also be traced in the size of the import required for export: the import content of one hundred HUF of export is significant in industry as a whole (63 HUF), but in the case of the largest exporting sections (computer, vehicle manufacturing) it is above average. It is worth mentioning the pharmaceutical industry, also a significant exporting section (and one of with highest value added), however does so with a relatively low import demand.
Change in industrial performance
The weight of industry within the national economy is relatively high in Hungary, representing 22% of the gross value added in 2024, surpassing the 20% EU average and being the 8th highest proportion within the member states’ ranking. Manufacturing is dominant among the industrial sections, being the most significant section with 85% of the value added within industry and 18% of the national economy total’s value added. (For a long time, beside manufacturing, real estate activities and trade carry the most significant weight in Hungary). Not only in Hungary is manufacturing important, in two-thirds of the member states leads the sections’ ranking. However, based on the so-called “highest-level sectional aggregates” created by combining individual sections, it is true for all countries of the European Union that the sectional concentration of the economy is quite low, i.e. the production of gross value added is not concentrated dominantly in one or another larger group of divisions, industry included. This is also shown by the fact that the Herfindahl–Hirschman index1, showing concentration, varied between 0.13 and 0.19 by countries in 2024.
Following a temporary decline related to structural change during the first half of the 1990s the volume of industrial production in Hungary reached the pre-regime change level again in the second half of the decade. The increasing trend continued up until 2007, then between 2008 and 2012 – with fluctuating performances from year to year – all in all output decreased (Figure 1). Domestic industry resumed the growth in 2013: until the outbreak of the Covid pandemic in 2019 the volume of industrial production increased overall by 35%2, this being the second highest growth rate in the EU (following Ireland). The pandemic broke the development of industry; however, the decline was temporary: output fell by 6.0% in 2020, but in 2021 it already exceeded the pre-pandemic peak and further grew in 2022. In 2023 and 2024 – similarly to the majority of EU countries – Hungary’s industrial output decreased, too. Considering long-term trends, the expansion was almost double3 compared to 2000, significantly exceeding the EU average (15%), and being the sixth highest growth rate among the member states (behind Ireland, Poland, Lithuania, Slovakia and Estonia). In the same period, industrial output in Germany, having the greatest industrial potential and of great importance for our domestic economy, increased by 8.3%.
Figure 1
Territorial concentration of industrial production
Different regions do not partake in the same proportion in countries’ industrial production. Certain regions see industrial centers develop, while the presence of industries may be low or other economic divisions may occupy dominant positions in others. The formation of centers may be impacted by several factors: connectivity, natural, social and functional characteristics, development level and historical factors.
According to 2023 data, 10% of EU NUTS3 regions producing the highest industrial value added concentrate 43% of the total value added, and 20% concentrate 59%; in Hungary, 10% (Budapest and Pest counties) produce 34% of the total value added, and 20% (Budapest, Pest, Győr-Moson-Sopron and Borsod-Abaúj-Zemplén counties) account for 49% of it.
Industrial value added in Budapest and Pest County is generated at a higher rate than the national average in the pharmaceutical industry (2.14), coke production, petroleum processing (2.19), printing activities (1.74) and the manufacture of electrical equipment (1.49). (The value added ratio related to the national equivalent is shown for Budapest and Pest county in 2023 in the brackets.)
Figure 2
Almost every Czech and Irish region (with one exception) belongs to the highest industrial value added producing areas, however these show different structures within each country: while gross industrial value added is evenly distributed between the regions in Czechia, the Gini coefficient4 shows a much more heterogeneous distribution in Ireland. Examining the specific values of the indicators, the distribution of industrial production is most concentrated in Ireland, Belgium and Spain, and the least in Slovakia. The average value of the EU member states was 0.54, that of Hungary 0.42 in 2023. The degree of concentration slightly increased both in the EU and in Hungary compared to the previous year.
Figure 3
Industrial production is therefore less concentrated territorially in Hungary than the on average in the EU. This fact is also supported by the Lorenz curve5, depicting deciles based on the gross value added of industry in the NUTS3-level regions6 of the European Union – corresponding to the counties in Hungary – and indicating a greater territorial concentration of industry at the EU level than in our country.
Figure 4
Hungary’s territorial concentration changed over the past twenty years as shown in Figure 5. The graph shows the development of two indicators, on the one hand the Herfindahl index7 value based on the industrial value added at current prices of the 20 counties, and on the other the change in the value added ratio of Budapest and Pest county.
The territorial concentration of industrial value added increased in Hungary until 2012, decreased until the end of the 2010s, then started to increase once again in 2022, continuing in 2023.
Figure 5
Industrial value chains in Hungary and in the European Union
The ratio of the gross value added of the industrial sector to output has been around 25–26% in Hungary during the past ten years, then decreased in 2021–2022 to 21% – mainly due to price-ratio changes. The value chain length returned in 2023–2024 to the approximately 25% level.
The change does not show any difference in comparison with the EU, with the Visegrad countries or Germany, the processes developed identically, however degree of change differences are between the countries.
Figure 6
Beside volume and price trends, value chain length changes are affected by the composition effect, too. In case production shifts towards lower or higher value added divisions, it is not an actual average value chain length change of the industry as a whole, rather a composition effect. Examining the value added content and its change by filtering out the composition effect (assuming an unchanged distribution of output between divisions), it turns out that larger changes are not caused by the composition effect, however in certain years its effect can also be felt, e.g. from 2009 to 2010 the standardized ratio decreased in a lesser degree (i.e. the composition effect caused part of the change), then it was “corrected” in the opposite direction by 2011. The composition effect was also observed in the last two years (2023–2024), the standardized ratio increased less than the original, i.e. output shifted slightly towards divisions with higher value added (the pharmaceutical industry being a typical example, as its proportion increased).
Figure 7
Changes in the price ratio played, too, a major part in the significant 2021–2022 decline in the value added content. The price level of intermediate consumption increased more significantly in both years than that of value added8, as such the value added ratio calculated based on current price data decreased, too, purely due to price changes. Volume changes reinforced this trend, the volume of intermediate consumption increased more (decreased less) (i.e. production became more material-intensive) in 2021 and 2022, reducing the value added ratio calculated based on current price data.
Changes in price ratios followed in 2023 the opposite direction compared to the previous two years. The prices of intermediate consumption decreased remarkably on average (due to the decrease in energy prices, among others), while the price level of value added increased significantly, roughly in line with the previous years. The material intensity of production also fell in industry to a slightly lower level (the volume of value added decreased less than that of output).
Table 1
Value, price and volume indices of intermediate consumption, value added and output in industry, previous year = 100.0%
Aggregate
Price index
Volume index
Value index
2021
2022
2023
2021
2022
2023
2021
2022
2023
Intermediate consumption
126.7
132.5
89.0
96.3
107.0
107.2
122.0
141.8
95.4
Value added
119.4
118.9
118.5
92.3
102.2
95.4
110.2
121.5
121.1
Output
124.8
129.4
95.1
95.3
105.9
93.1
119.0
137.0
100.7
On average, value chain lengths are higher in the smaller weight representing divisions of industry. There are very significant differences in the value added content of the industrial divisions: the value chain length is highest in mining, pharmaceutical industry, in the repair of industrial machinery and equipment as well as in the printing industry, with a ratio of around 45% or higher. The lowest values, on the other hand, are in the electronics industry, metallurgy, manufacture of motor vehicles, trailers and semi-trailers, manufacturing of chemical products, representing values below 20%.
Figure 8
Value chain lengths at the subsection level also show significant differences when comparing the Visegrad countries. The manufacture of motor vehicles, trailers and semi-trailers, as in Hungary, is the most significant industrial subsection in Czechia and Slovakia, too, the value chain length in the three countries moved within a 7.1 percentage points range in 2023. Among the highlighted subsections, Hungary has a more favorable position in metal processing and metallurgy, as well as in the electronics industry; in the energy industry Hungary ranks second among the V4 countries.
Table 2
The proportion within industrial gross value added and the value chain length in certain emphasized industrial divisions and groups of divisions, 2023
(percentage)
Division. groups of divisions
Hungary
Czechia
Poland
Slovakia
Germanya)
Proportion within industrial gross value added
Manufacturing total
85.3
82.1
75.4
79.9
84.7
Within it:
food industry
9.4
7.3
11.6
6.1
6.4
rubber. plastics and building material industry
7.9
8.7
9.7
8.5
6.0
metal processing and metallurgy
8.4
11.3
10.3
15.1
10.1
electronics industry
7.1
4.2
1.3
2.3
6.4
manufacture of electrical equipment
7.4
7.3
4.2
4.2
5.5
manufacture of motor vehicles, trailers and semi-trailers
14.5
18.5
6.6
18.0
18.3
Energy industry
10.7
12.3
13.7
16.5
10.4
Value chain length
Manufacturing total
23.5
26.5
26.5
20.6
33.5
Within it:
food industry
20.4
27.9
20.7
24.9
24.2
rubber, plastics and building material industry
29.3
31.5
31.6
29.1
37.1
metal processing and metallurgy
31.8
29.6
29.0
27.0
31.0
electronics industry
20.2
25.3
16.4
17.6
51.1
manufacture of electrical equipment
19.2
32.1
23.6
18.3
36.9
manufacture of motor vehicles. trailers and semi-trailers
15.6
19.1
18.3
12.0
32.7
Energy industry
39.9
37.5
51.2
22.9
37.2
Source: Eurostat.
a) Preliminary data.
An adequate tool for analyzing value chains is the Balance of divisions' connections (ÁKM), presenting not only direct utilizations but also cumulative ones, too (the sum of indirect effects accumulated due to direct and spillover effects). Symmetrical ÁKMs are prepared every 5 years, the last available one is for 2020. Since the ÁKM basically displays the so-called technological relations system of the economy, which slowly changes over time, this is why its 2020 state is still relevant today.
Table 3
Specific values calculated on the basis of mathematical processing of a symmetric IOM
Aspect
Industry
National economy
Multiplier (how much domestic output is generated by producing 1 HUF of value added), HUF
1.36
1.37
Direct import content (how much import is directly needed to produce 1 HUF of output), HUF
0.5
0.28
Cumulative import content (how much import is directly and indirectly needed to produce 1 HUF of output), HUF
0.584
0.358
Export ratio of output (proportion on the total utilization side realized as export), %
42.6%
27.1%
Source: own calculations based on HCSO Symmetric ÁKM, szervezet x szervezet 2020.
Table 3 shows the basic indicators of industry and the entire national economy. The so-called multiplier indicates how much domestic output is generated by producing 1 HUF of value added, considering spillover effects, too. This is basically impacted by two factors: the import requirement of production (the more import-intensive an activity is, the less domestic output it generates) and its value added content (the higher the value added content, the lower the ratio of intermediate consumption, and therefore the smaller the spillover effect). In industry, the multiplier value is 1.36 HUF, corresponding roughly to the national economy’s average.
The direct and cumulative import content required for producing the output is important and interesting in itself. The import content is also high in industry as a whole, the import content of 1 HUF output is 0.5 HUF, and due to spillover effects an additional 0.08 HUF is added to it, meaning that the use of imported materials is predominantly included directly in the value of the products in industry. In contrast, the difference between individual industrial divisions may be quite significant. (For example, in the automotive industry, the direct import content is exceptionally high, 0.67 HUF import content is “built into” 1 HUF output, and the proportion of indirect import adds another 0.07 HUF to it.)
Considering that industry plays a prominent role in export, the calculation of additional indicators is also reasonable. So-called content indicators could be calculated by using ÁKM, of which the export’s cumulative import content may be of interest (how much import is needed for 100 HUF export). Figure 9 shows, based on the ÁKM, the specific import content of export for parts and for the whole of industry.
It is visible that the import content of 100 HUF of export is significant in the industry as a whole (63 HUF), but in the case of the largest exporting divisions (electronics industry, vehicle manufacturing) it is above average. It is worth highlighting the pharmaceutical industry from the other end of the list, also a significant exporting sector (and one of the highest value added activities), moreover does so with a relatively low import requirement.
Figure 9
Footnotes
-
The Herfindahl–Hirschman index is one of the most commonly used concentration indices, the sum of the squares of the relative value sum. It measures between 1/n and 1, where 1/n indicates an even distribution of the value sum among n number of industry groups, meaning. the absence of relative concentration, and 1 stands for absolute concentration, if only one group of divisions were present in a given economy. ↩
-
Based on calendar-adjusted data available for international comparison. ↩
-
Based on calendar-adjusted data available for international comparison. ↩
-
The Gini index (concentration coefficient) has a value of 0 representing uniform distribution and 1 representing perfect concentration. For more details, see the methodological description. ↩
-
Gross value added at basic prices by NUTS 3 regions [nama_10r_3gva__custom_10826236], Eurostat: Statistics | Eurostat (europa.eu). ↩
-
The Lorenz curve is a square diagram in a rectangular coordinate system, where the diagonal of the square represents uniform distribution, the complete absence of relative concentration. The further down the Lorenz curve is from the grid, the more concentrated the phenomenon under study is in relative terms. See also the methodological description. There are approximately 117 regions in one decile In the EU member states; in the case of Hungary, since the 20 counties are at NUTS level 3, there are 2 counties in each decile. ↩
-
See footnote 1 and the methodological description for the definition and description of the Herfindahl index. The Herfindahl index theoretically measures the degree of absolute and relative concentration, as well as its change, in our case, however, since there are 20 counties throughout, the degree of absolute concentration does not change. ↩
-
Technically, the volume index of value added is calculated by double deflation, meaning the price index is an implicit (indirectly calculated) index, however content-wise the output index is the weighted average of the intermediate consumption and value added indices. ↩
Released: 29 April 2026
Hungary’s industrial output grew steadily in the 2010s. Although this dynamism was temporarily broken by the pandemic, production volume surpassed in 2021–2022 the pre-pandemic peak. However, the 2023 and 2024 industrial output of Hungary, as those of most EU countries, decreased.
The territorial concentration of production grew in Hungary after 2021 – contrary to the previous decreasing trend. Despite all these, it remains lower than the EU average, and output is less tied to one single county or subsection.
The gross value added to output rate of the Hungarian industrial sector was 25.4% in 2024. The value chain length remained mainly unchanged over the past ten years, up until 2021, when slightly decreased, then in 2022 more significantly – below 21% –, from 2023 grew once again. Behind this latter change stands the so-called composition effect, i.e. output shifted towards sections with higher value added. The value chain length change – albeit at a different level than in Hungary – underwent a similar process in the Visegrad countries and Germany, too. The gross value added to output rate in the past year in Hungary differed significantly by industrial subsections, ranging between 15.7% (manufacture of chemicals and chemical products) and 54.8% (mining). The value chain length in several cases is shorter than the average, mainly in the subsections representing a greater weight in terms of production (production of road vehicles, food industry, production of electrical equipment, and production of computers, electronics, and optical products can be highlighted; the combined industrial output proportion of these four subsections being 39%).
The development of the domestic value chain length continues to be significantly impacted by the import demand of output, higher in the case of sections with a greater weight in production. This can also be traced in the size of the import required for export: the import content of one hundred HUF of export is significant in industry as a whole (63 HUF), but in the case of the largest exporting sections (computer, vehicle manufacturing) it is above average. It is worth mentioning the pharmaceutical industry, also a significant exporting section (and one of with highest value added), however does so with a relatively low import demand.
Change in industrial performance
The weight of industry within the national economy is relatively high in Hungary, representing 22% of the gross value added in 2024, surpassing the 20% EU average and being the 8th highest proportion within the member states’ ranking. Manufacturing is dominant among the industrial sections, being the most significant section with 85% of the value added within industry and 18% of the national economy total’s value added. (For a long time, beside manufacturing, real estate activities and trade carry the most significant weight in Hungary). Not only in Hungary is manufacturing important, in two-thirds of the member states leads the sections’ ranking. However, based on the so-called “highest-level sectional aggregates” created by combining individual sections, it is true for all countries of the European Union that the sectional concentration of the economy is quite low, i.e. the production of gross value added is not concentrated dominantly in one or another larger group of divisions, industry included. This is also shown by the fact that the Herfindahl–Hirschman index1, showing concentration, varied between 0.13 and 0.19 by countries in 2024.
Following a temporary decline related to structural change during the first half of the 1990s the volume of industrial production in Hungary reached the pre-regime change level again in the second half of the decade. The increasing trend continued up until 2007, then between 2008 and 2012 – with fluctuating performances from year to year – all in all output decreased (Figure 1). Domestic industry resumed the growth in 2013: until the outbreak of the Covid pandemic in 2019 the volume of industrial production increased overall by 35%2, this being the second highest growth rate in the EU (following Ireland). The pandemic broke the development of industry; however, the decline was temporary: output fell by 6.0% in 2020, but in 2021 it already exceeded the pre-pandemic peak and further grew in 2022. In 2023 and 2024 – similarly to the majority of EU countries – Hungary’s industrial output decreased, too. Considering long-term trends, the expansion was almost double3 compared to 2000, significantly exceeding the EU average (15%), and being the sixth highest growth rate among the member states (behind Ireland, Poland, Lithuania, Slovakia and Estonia). In the same period, industrial output in Germany, having the greatest industrial potential and of great importance for our domestic economy, increased by 8.3%.
Territorial concentration of industrial production
Different regions do not partake in the same proportion in countries’ industrial production. Certain regions see industrial centers develop, while the presence of industries may be low or other economic divisions may occupy dominant positions in others. The formation of centers may be impacted by several factors: connectivity, natural, social and functional characteristics, development level and historical factors.
According to 2023 data, 10% of EU NUTS3 regions producing the highest industrial value added concentrate 43% of the total value added, and 20% concentrate 59%; in Hungary, 10% (Budapest and Pest counties) produce 34% of the total value added, and 20% (Budapest, Pest, Győr-Moson-Sopron and Borsod-Abaúj-Zemplén counties) account for 49% of it.
Industrial value added in Budapest and Pest County is generated at a higher rate than the national average in the pharmaceutical industry (2.14), coke production, petroleum processing (2.19), printing activities (1.74) and the manufacture of electrical equipment (1.49). (The value added ratio related to the national equivalent is shown for Budapest and Pest county in 2023 in the brackets.)
Almost every Czech and Irish region (with one exception) belongs to the highest industrial value added producing areas, however these show different structures within each country: while gross industrial value added is evenly distributed between the regions in Czechia, the Gini coefficient4 shows a much more heterogeneous distribution in Ireland. Examining the specific values of the indicators, the distribution of industrial production is most concentrated in Ireland, Belgium and Spain, and the least in Slovakia. The average value of the EU member states was 0.54, that of Hungary 0.42 in 2023. The degree of concentration slightly increased both in the EU and in Hungary compared to the previous year.
Industrial production is therefore less concentrated territorially in Hungary than the on average in the EU. This fact is also supported by the Lorenz curve5, depicting deciles based on the gross value added of industry in the NUTS3-level regions6 of the European Union – corresponding to the counties in Hungary – and indicating a greater territorial concentration of industry at the EU level than in our country.
Hungary’s territorial concentration changed over the past twenty years as shown in Figure 5. The graph shows the development of two indicators, on the one hand the Herfindahl index7 value based on the industrial value added at current prices of the 20 counties, and on the other the change in the value added ratio of Budapest and Pest county.
The territorial concentration of industrial value added increased in Hungary until 2012, decreased until the end of the 2010s, then started to increase once again in 2022, continuing in 2023.
Industrial value chains in Hungary and in the European Union
The ratio of the gross value added of the industrial sector to output has been around 25–26% in Hungary during the past ten years, then decreased in 2021–2022 to 21% – mainly due to price-ratio changes. The value chain length returned in 2023–2024 to the approximately 25% level.
The change does not show any difference in comparison with the EU, with the Visegrad countries or Germany, the processes developed identically, however degree of change differences are between the countries.
Beside volume and price trends, value chain length changes are affected by the composition effect, too. In case production shifts towards lower or higher value added divisions, it is not an actual average value chain length change of the industry as a whole, rather a composition effect. Examining the value added content and its change by filtering out the composition effect (assuming an unchanged distribution of output between divisions), it turns out that larger changes are not caused by the composition effect, however in certain years its effect can also be felt, e.g. from 2009 to 2010 the standardized ratio decreased in a lesser degree (i.e. the composition effect caused part of the change), then it was “corrected” in the opposite direction by 2011. The composition effect was also observed in the last two years (2023–2024), the standardized ratio increased less than the original, i.e. output shifted slightly towards divisions with higher value added (the pharmaceutical industry being a typical example, as its proportion increased).
Changes in the price ratio played, too, a major part in the significant 2021–2022 decline in the value added content. The price level of intermediate consumption increased more significantly in both years than that of value added8, as such the value added ratio calculated based on current price data decreased, too, purely due to price changes. Volume changes reinforced this trend, the volume of intermediate consumption increased more (decreased less) (i.e. production became more material-intensive) in 2021 and 2022, reducing the value added ratio calculated based on current price data.
Changes in price ratios followed in 2023 the opposite direction compared to the previous two years. The prices of intermediate consumption decreased remarkably on average (due to the decrease in energy prices, among others), while the price level of value added increased significantly, roughly in line with the previous years. The material intensity of production also fell in industry to a slightly lower level (the volume of value added decreased less than that of output).
Value, price and volume indices of intermediate consumption, value added and output in industry, previous year = 100.0%
| Aggregate | Price index | Volume index | Value index | ||||||
|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2022 | 2023 | 2021 | 2022 | 2023 | 2021 | 2022 | 2023 | |
| Intermediate consumption | 126.7 | 132.5 | 89.0 | 96.3 | 107.0 | 107.2 | 122.0 | 141.8 | 95.4 |
| Value added | 119.4 | 118.9 | 118.5 | 92.3 | 102.2 | 95.4 | 110.2 | 121.5 | 121.1 |
| Output | 124.8 | 129.4 | 95.1 | 95.3 | 105.9 | 93.1 | 119.0 | 137.0 | 100.7 |
On average, value chain lengths are higher in the smaller weight representing divisions of industry. There are very significant differences in the value added content of the industrial divisions: the value chain length is highest in mining, pharmaceutical industry, in the repair of industrial machinery and equipment as well as in the printing industry, with a ratio of around 45% or higher. The lowest values, on the other hand, are in the electronics industry, metallurgy, manufacture of motor vehicles, trailers and semi-trailers, manufacturing of chemical products, representing values below 20%.
Value chain lengths at the subsection level also show significant differences when comparing the Visegrad countries. The manufacture of motor vehicles, trailers and semi-trailers, as in Hungary, is the most significant industrial subsection in Czechia and Slovakia, too, the value chain length in the three countries moved within a 7.1 percentage points range in 2023. Among the highlighted subsections, Hungary has a more favorable position in metal processing and metallurgy, as well as in the electronics industry; in the energy industry Hungary ranks second among the V4 countries.
The proportion within industrial gross value added and the value chain length in certain emphasized industrial divisions and groups of divisions, 2023
| Division. groups of divisions | Hungary | Czechia | Poland | Slovakia | Germanya) |
|---|---|---|---|---|---|
| Proportion within industrial gross value added | |||||
| Manufacturing total | 85.3 | 82.1 | 75.4 | 79.9 | 84.7 |
| Within it: | |||||
| food industry | 9.4 | 7.3 | 11.6 | 6.1 | 6.4 |
| rubber. plastics and building material industry | 7.9 | 8.7 | 9.7 | 8.5 | 6.0 |
| metal processing and metallurgy | 8.4 | 11.3 | 10.3 | 15.1 | 10.1 |
| electronics industry | 7.1 | 4.2 | 1.3 | 2.3 | 6.4 |
| manufacture of electrical equipment | 7.4 | 7.3 | 4.2 | 4.2 | 5.5 |
| manufacture of motor vehicles, trailers and semi-trailers | 14.5 | 18.5 | 6.6 | 18.0 | 18.3 |
| Energy industry | 10.7 | 12.3 | 13.7 | 16.5 | 10.4 |
| Value chain length | |||||
| Manufacturing total | 23.5 | 26.5 | 26.5 | 20.6 | 33.5 |
| Within it: | |||||
| food industry | 20.4 | 27.9 | 20.7 | 24.9 | 24.2 |
| rubber, plastics and building material industry | 29.3 | 31.5 | 31.6 | 29.1 | 37.1 |
| metal processing and metallurgy | 31.8 | 29.6 | 29.0 | 27.0 | 31.0 |
| electronics industry | 20.2 | 25.3 | 16.4 | 17.6 | 51.1 |
| manufacture of electrical equipment | 19.2 | 32.1 | 23.6 | 18.3 | 36.9 |
| manufacture of motor vehicles. trailers and semi-trailers | 15.6 | 19.1 | 18.3 | 12.0 | 32.7 |
| Energy industry | 39.9 | 37.5 | 51.2 | 22.9 | 37.2 |
Source: Eurostat.
a) Preliminary data.
An adequate tool for analyzing value chains is the Balance of divisions' connections (ÁKM), presenting not only direct utilizations but also cumulative ones, too (the sum of indirect effects accumulated due to direct and spillover effects). Symmetrical ÁKMs are prepared every 5 years, the last available one is for 2020. Since the ÁKM basically displays the so-called technological relations system of the economy, which slowly changes over time, this is why its 2020 state is still relevant today.
Specific values calculated on the basis of mathematical processing of a symmetric IOM
| Aspect | Industry | National economy |
|---|---|---|
| Multiplier (how much domestic output is generated by producing 1 HUF of value added), HUF | 1.36 | 1.37 |
| Direct import content (how much import is directly needed to produce 1 HUF of output), HUF | 0.5 | 0.28 |
| Cumulative import content (how much import is directly and indirectly needed to produce 1 HUF of output), HUF | 0.584 | 0.358 |
| Export ratio of output (proportion on the total utilization side realized as export), % | 42.6% | 27.1% |
Source: own calculations based on HCSO Symmetric ÁKM, szervezet x szervezet 2020.
Table 3 shows the basic indicators of industry and the entire national economy. The so-called multiplier indicates how much domestic output is generated by producing 1 HUF of value added, considering spillover effects, too. This is basically impacted by two factors: the import requirement of production (the more import-intensive an activity is, the less domestic output it generates) and its value added content (the higher the value added content, the lower the ratio of intermediate consumption, and therefore the smaller the spillover effect). In industry, the multiplier value is 1.36 HUF, corresponding roughly to the national economy’s average.
The direct and cumulative import content required for producing the output is important and interesting in itself. The import content is also high in industry as a whole, the import content of 1 HUF output is 0.5 HUF, and due to spillover effects an additional 0.08 HUF is added to it, meaning that the use of imported materials is predominantly included directly in the value of the products in industry. In contrast, the difference between individual industrial divisions may be quite significant. (For example, in the automotive industry, the direct import content is exceptionally high, 0.67 HUF import content is “built into” 1 HUF output, and the proportion of indirect import adds another 0.07 HUF to it.)
Considering that industry plays a prominent role in export, the calculation of additional indicators is also reasonable. So-called content indicators could be calculated by using ÁKM, of which the export’s cumulative import content may be of interest (how much import is needed for 100 HUF export). Figure 9 shows, based on the ÁKM, the specific import content of export for parts and for the whole of industry.
It is visible that the import content of 100 HUF of export is significant in the industry as a whole (63 HUF), but in the case of the largest exporting divisions (electronics industry, vehicle manufacturing) it is above average. It is worth highlighting the pharmaceutical industry from the other end of the list, also a significant exporting sector (and one of the highest value added activities), moreover does so with a relatively low import requirement.
Footnotes
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The Herfindahl–Hirschman index is one of the most commonly used concentration indices, the sum of the squares of the relative value sum. It measures between 1/n and 1, where 1/n indicates an even distribution of the value sum among n number of industry groups, meaning. the absence of relative concentration, and 1 stands for absolute concentration, if only one group of divisions were present in a given economy. ↩
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Based on calendar-adjusted data available for international comparison. ↩
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Based on calendar-adjusted data available for international comparison. ↩
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The Gini index (concentration coefficient) has a value of 0 representing uniform distribution and 1 representing perfect concentration. For more details, see the methodological description. ↩
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Gross value added at basic prices by NUTS 3 regions [nama_10r_3gva__custom_10826236], Eurostat: Statistics | Eurostat (europa.eu). ↩
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The Lorenz curve is a square diagram in a rectangular coordinate system, where the diagonal of the square represents uniform distribution, the complete absence of relative concentration. The further down the Lorenz curve is from the grid, the more concentrated the phenomenon under study is in relative terms. See also the methodological description. There are approximately 117 regions in one decile In the EU member states; in the case of Hungary, since the 20 counties are at NUTS level 3, there are 2 counties in each decile. ↩
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See footnote 1 and the methodological description for the definition and description of the Herfindahl index. The Herfindahl index theoretically measures the degree of absolute and relative concentration, as well as its change, in our case, however, since there are 20 counties throughout, the degree of absolute concentration does not change. ↩
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Technically, the volume index of value added is calculated by double deflation, meaning the price index is an implicit (indirectly calculated) index, however content-wise the output index is the weighted average of the intermediate consumption and value added indices. ↩