Ricz, J., Éltető, A.: Rules for sale: autocratic forbearance, as a new industrial policy tool to promote the Hungarian battery hub

tury.g — Fri, 12 Jun 2026 10:50:12 +0000

Rules for sale: autocratic forbearance, as a new industrial policy tool to promote the Hungarian battery hub

In: Journal of Economic Policy Reform, 1–29. (2026).

DOI: https://doi.org/10.1080/17487870.2026.2680291

Abstract

New industrial policy has (re-)gained legitimacy in scholarly debates recently, as a means to boost and direct development. This article argues that autocratic leaders may exploit this policy to strengthen their domestic and international power position. By combining international and comparative political economy perspectives, we analyse the main logic, instruments, and limits of the Hungarian government’s new industrial policy to promote the electric vehicle battery sector. The case study illustrates how the Orbán regime manipulated the institutional and regulatory setting and applied selective (non-)enforcement of regulations – theorised as autocratic forbearance – to create locational advantages for Asian battery firms.

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Ricz, J., Éltető, A.: Dependency meets illiberalism: expansion of the EV battery sector in Central Europe

Baller Zsófia — Thu, 20 Nov 2025 14:35:10 +0000

Dependency meets illiberalism: expansion of the EV battery sector in Central Europe

Szerzők: Ricz Judit és Éltető Andrea

In: Post-Communist Economies, 1–26

DOI: https://doi.org/10.1080/14631377.2025.2587008

Absztrakt

In the emerging new geopolitical landscape, Central European (CE) economies experiment with alternative approaches, leading to the rise of illiberal politics and changed economic governance. With Hungary being the most critical example of a DME coupled with illiberal political tendencies, this study compares six Central European countries’ EV battery ambitions and strategies as well as the consequences thereof. Being a hub for the European automotive industry over the last decades, the CE countries’ recent turn towards the production of electric vehicle (EV) batteries is a step to reposition themselves in these regional value chains. Our exploratory study compares the main ambitions and strategies of the creation of the new EV battery sector across six Central European countries in the dependency-illiberalism nexus. Our results prove that besides the dependency arguments, illiberal political as well as geopolitical and strategic considerations are the main driving forces of recent changes.