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In search of clusters
7-17Views:410The aim of this article is to present the ‘regional cluster quick scan’as an efficient and objective tool to scan a region of interest for the presence, nature and development phase of regional clusters. The ‘tool’developed in this research is based on the relations between the state of cluster development in regions, competitiveness, and economic growth. First, a theoretical model is developed and then this model is applied to a real case to test the validity of the model. The results indicate the possibility of identifying regional clusters and their competitiveness by using Shift and Share analysis.
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Cost analysis of pig slaughtering: A Hungarian case study
121-129Views:652The scale of Hungarian slaughterhouses is small in international comparison and the cost of slaughter and cutting a pig of average live weight is relatively high at 16.1-19.4 EUR on average. The aim of this study is to evaluate the cost of pig slaughter and cutting through the case study of a medium-scale plant in Hungary. Based on data from the enterprise, a calculation was performed in relation to the “output” quantity of pig slaughter and cutting, as well as its value and the cost and cost structure of processing. The capacity of the examined plant and its utilisation were analysed and cost reductions were estimated for various increases of output. In 2015, the direct cost of slaughter and cutting was 18.9 EUR per pig for the medium-scale plant which processed 100 thousand pigs. When the purchase cost of pigs is excluded, labour costs accounted for the highest share (30%) of costs, followed by services (29%) and energy costs (21%). For this reason, the level of wages and employer’s contributions has a rather high significance. Analysis showed that significant increases in Hungarian minimum wage and guaranteed living wage in 2017 resulted in an estimated 7% increase in the cost of slaughter and cutting compared to 2015, despite the decrease of contributions. The capacity utilisation of the plant was a low 28% when compared to a single 8-hour shift considered full capacity. The cost of slaughter and cutting was estimated to be reduced to 14.2-17.0 EUR per pig if the plant operated at full capacity. This may be considered a lower bound estimate of cost because there are numerous restricting factors on optimising capacity utilisation, such as: 1) number of live animals available for purchase and related logistics; 2) cooling capacity availability; 3) labour availability; 4) market position of the enterprise and potential for marketing additional pig meat products. Enterprises of this scale are recommended to consider producing more value-added products and, accordingly, investing in product development.
JEL Classification: Q13, Q19
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THE ECONOMIC STRUCTURAL IMPACTS OF THE INDUSTRIALIZATION WAVE IN DEBRECEN
Views:34Over the past decade, an intensive industrialization process has unfolded in Debrecen, driven primarily by foreign direct investment (FDI). Large-scale industrial investments—particularly projects in the automotive and battery industries—are fundamentally transforming the city’s economic structure. The aim of the research is to examine how new industrial investments are altering Debrecen’s manufacturing structure, as well as to what extent the emerging industrial structure differs from the previous economic structure. The empirical basis of the study is the manufacturing production database of the Central Statistical Office, as well as land-use data from companies operating in or relocating to Debrecen’s two main industrial zones (the Southern Economic Zone and the Northwestern Economic Zone). During the research, I applied several empirical methods: the Herfindahl–Hirschman concentration index, shift–share analysis, and finally, the Location Quotient assessment. The results show that the new wave of industrialization is leading to significant industrial concentration. More than ninety percent of the manufacturing area in the industrial zones examined is linked to two industries—vehicle manufacturing and electrical equipment manufacturing. The significant increase in concentration indices indicates that Debrecen’s economy is shifting toward a specialized industrial model. This process holds significant potential for economic growth, but it also increases the risk of economic vulnerability.