<P> There was no common citizenship: one was either an Austrian citizen or a Hungarian citizen, never both . Austria and Hungary were fiscally sovereign and independent entities. The Kingdom of Hungary could preserve its separated and independent budget . </P> <P> However, by the end of the 19th century, economic differences gradually began to even out as economic growth in the eastern parts of the Empire consistently surpassed that in the western . The strong agriculture and food industry of the Kingdom of Hungary with the centre of Budapest became predominant within the empire and made up a large proportion of the export to the rest of Europe . Meanwhile, western areas, concentrated mainly around Prague and Vienna, excelled in various manufacturing industries . This division of labour between the east and west, besides the existing economic and monetary union, led to an even more rapid economic growth throughout Austria - Hungary by the early 20th century . Austria could preserve its dominance within the empire in the sectors of the first industrial revolution, but Hungary had a better position in the industries of the second industrial revolution, in these modern industrial sectors the Austrian competition could not become overwhelming . </P> <P> The empire's heavy industry had mostly focused on machine building, especially for the electric power industry, locomotive industry and automotive industry, while in light industry the precision mechanics industry was the most dominant . </P> <P> During the war the national governments of Vienna and Budapest set up a highly centralized war economy, resulting in a bureaucratic dictatorship . It drafted skilled workers and engineers without realizing the damage it did to the economy . </P>

Economic effects of world war 1 on germany