Spillovers behind the scenes–how runaway productions affect the domestic film industry

Abstract

Spillovers from multinational entities (MNEs) significantly shape the economic landscape of host countries. The film industry is no exception, yet the extent to which runaway productions rely on local labour and how host industries benefit from foreign productions remains underexplored. Hungary’s film industry, which has seen substantial growth fuelled by outsourced filmmaking, provides an ideal case for further investigation. This research, primarily based on IMDb data, examines the vertical and horizontal spillovers of runaway productions. Findings reveal a growing integration of domestic talent into international filmmaking, with an increasing number of Hungarians taking on key leadership roles. The industry displays a notable duality, as professionals tend to specialise in either domestic or international filmmaking. However, employing crew members with international experience positively impacts domestic productions’ quality and reception.