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How did railways contribute to Budapest’s economic dominance in Hungary?

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central Budapest — Budapest Central Budapest, looking north along the Danube River, with the Parliament Building on the east bank.

The construction of a rigidly centralized railway network was instrumental in establishing Budapest’s economic dominance over the rest of Hungary. Preceding the city's industrial growth, this transport system was designed so that all main lines radiated from the capital, effectively positioning Budapest as the central hub for the nation’s commerce and industry.12

This infrastructure allowed the city to consolidate its control over the country's economic life. By channeling the influx of foreign capital through major banks and government directives, the railway system reinforced the centralizing role of the capital, enabling Budapest to dominate industrial production and stifle the economic growth of other Hungarian towns. Consequently, by 1938, the city held approximately three-fifths of the country's factory workers, cementing its status as the nation's primary industrial and financial center.1