International Conference on Economics, Finance & Business, Prague

ECONOMIC COMPETITIVENESS, DEVELOPMENT AND CITY BRANDING IN BUDAPEST AND BUCHAREST

BOGDAN POPOVICI

Abstract:

Abstract Today world context generates continuous urban development ,accelerates economic competitiveness and intensifies city branding. Capital cities in Central and Eastern Europe must position themselves as national growth engines and as internationally recognisable brands competing within the European urban hierarchy. We analyse Budapest and Bucharest, two capitals of two very interlinked neighbour countries, former communist cities with different trajectories in competitiveness and branding after the 1990s. The paper analyses the structural and dynamic factors which influence the performance of the two cities starting from theories of urban competitiveness. Indicators like GDP per capita, foreign direct investment, labor productivity, human capital, innovation ecosystems, infrastructure and governance draw the competitive advantages and vulnerabilities. Budapest is a city with deep historical integration into Western markets, institutional continuity and strong branding as a Central European cultural and innovation hub. Bucharest grows after EU accession and has a cost attractiveness for investors mixed with a fast developing IT sector. Bucharest struggles with lack of cohesion of governance , infrastructure deficits and a weak city branding. The analysis highlights that branding is not only promotion, it is a strategic component of competitiveness and it influences perceptions of the investors, residents and international institutions. The study finds out that sustainable competitiveness for these two cities requires a shift from cost advantages to innovation growth which must be supported by governance reform, human capital investment and coherent branding strategies.

Keywords: City branding, economic competitiveness, urban development, Budapest, Bucharest