Paper/Speech Details of Conference Program for the 27th NISPAcee Annual Conference Program Overview WG5: Public Finance and Public Financial Management Author(s) Gyorgyi Nyikos Ludovika University of Public Service Budapest Hungary Laposa Tamas, Beres Attila, Title Economic Effects of Public and Private Sources File Paper files are available only for conference participants, please login first. Presenter Gyorgyi Nyikos Abstract In the 2014-2020 programming period Hungary has been allocated very large amounts of funding sources from the European Structural and Investment Funds (ESIF). For the implementation of funds a number of options are available, such as non-repayable grants and also financial instruments, including loans, equity and grants combined with loans. Hungary has decided to make wide use of each of these funding options significant funds being allocated to financial instruments. These sources are primarily used to fill the market gaps in the funding of companies’ projects. The research paper aims firstly to present the different public and private funding sources available in Hungary and secondly there effect on SMEs and larger companies is investigated. Besides the sources originating from the EU, the research will also focus on what scale purely national sources public and private (commercial banks as well!) are used for economic development and how they compare with EU funds. The ultimate goal is to show whether the EU and national funds contributed to the development of the Hungarian economy at micro level or not. The data to be analysed in the paper will be obtained first through desk based research on the available funds and their use and effects from public databases and other publicly available sources. Secondly, questionnaires are to be sent to SMEs to ask inter alia about their experience in using EU and other state funding and also how these compare with their experiences of using private funding. The data analysis will focus on three main points. Firstly the effects of economic development on enterprises: investments, employment, productivity and profitability. The related research questions are how the different funds contributed to the development of the beneficiary enterprises, whether there is a difference in the scale of the effects for the different types of funding, and whether there is a difference in the scale of the effects between the more developed regions (Central Hungary) and the less developed regions (convergence regions). In addition the effects of human development on the participants, including the effects on employability and income and the effects of infrastructural development on real estate prices will also be included in the analysis. It is expected that the findings will show that EU funds should have an effect on the development of enterprises, however we have some concerns about the scale of it. A positive impact on employability and income is also expected to be shown. Regarding infrastructural development our hypothesis is that if a development is positive for the neighbourhood, then the real estate prices near the development will go up.
