Publication

This paper discusses the transformation of the defense industry in Hungary following the end of the Cold War. The author describes how the Hungarian defense industry has undergone radical change since the late 1980s and explains how production decreases, personnel layoffs, company closures, business restructuring activities, and corporate privatization processes have shaped the industry. The paper concludes that despite the high cost of job and infrastructure losses, the Hungarian defense industry has been able to transform itself into a more efficient, flexible, and internationally competitive branch of the national and international economy. That author also explains that with pending NATO membership, the Hungarian defense industry should also further benefit and develop potential for economic growth.