Abstract
Due to the frequent changes in ruling powers and shifting borders, in addition to the geopolitical situation of the region, Transcarpathia, the westernmost county of Ukraine, constitutes an especially suitable site for examining transnational ethnic kinship relations. The main aim of the present article is to shed light on the correlation between social-ethnic interactions and economic efficiency, paying special attention to the role of informal and formal ethnic relations in the activities of business actors and in their access to certain resources. The article analyzes how these processes have been influenced by Hungary’s kin-state politics. The research is based mainly on semi-structured interviews conducted with local Transcarpathian Hungarian and Ukrainian entrepreneurs as well as with the representatives of business organizations related to the given community and experts in the field.
The investigation found that among Transcarpathian Hungarian entrepreneurs the role of formal ethnic relations has strengthened due to the financial support provided by Hungary, which was not the case for entrepreneurs belonging to the majority population. The extensive assistance by Hungary has given Hungarian entrepreneurs an advantage in accessing resources, which has caused some tension between Hungarian and Ukrainian entrepreneurs in Transcarpathia.