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The Emergence of Organizations and Markets$
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John F. Padgett and Walter W. Powell

Print publication date: 2012

Print ISBN-13: 9780691148670

Published to Princeton Scholarship Online: October 2017

DOI: 10.23943/princeton/9780691148670.001.0001

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Social Sequence Analysis

Social Sequence Analysis

Ownership Networks, Political Ties, and Foreign Investment in Hungary

(p.347) 12 Social Sequence Analysis
The Emergence of Organizations and Markets

David Stark

Balázs Vedres

Princeton University Press

This chapter poses a new agenda for the field of economic development, asking whether and how foreign investment is integrated into the local networks of host economies. It first presents the basic contours of this case: the Hungarian economy after the collapse of state socialism, the subsequent emergence of interenterprise networks, the demise of state ownership, and the rise of foreign investment. After describing the data collection involved, the chapter charts the changing proportions of the Hungarian economy that are foreign or domestic, and networked or isolated. To identify the microprocesses of interorganizational network formation that explain the macrostructural outcomes, the chapter turns to modeling that makes sequences of network positions the unit of analysis. Finally, this chapter explores the patterns of firms' personnel ties to political parties and then presents findings that demonstrate the relationship between the network sequence pathways, firms' political ties, and levels of foreign investment.

Keywords:   social sequence analysis, state socialism collapse, foreign investment, Hungarian economy, interenterprise networks, state ownership, interorganizational network formation, political parties, foreign investment, economic development

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