Industrial mass production and regional differentiation in Hungary

This paper focuses on the issue of spatial differentiation stimulated by di ssimilarities in the economic structure of regions/settlements. After the t ransition period, two distinct models of economic revival and development e merged in Hungary. One, embodied by Budapest, is that prosperity rests on t he tertiary sector. However, industrial output outweighs all other economic indices in regional differentiation in the remainder of the country, as a consequence of the investment strategies of multinational companies. The ma in factors, agents and impacts on regional differentiation in this non-know ledge-based economic development model are revealed.