Volume 2 Issue 3 (2013)

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Taxing foreign capital in Brazil: a sequential game

João Ricardo M. G. Costa Filho (Porto University, Portugal) and Frederico A. Turolla (ESPM, Brazil)


Emerging market economies have witnessed a surge in capital inflows as a result of monetary expansion in developed countries in the aftermath of the 2008 crisis. In this paper, we have modeled the Brazilian decision to tax foreign capital inflows, which were deemed to hurt country’s firm’s competitiveness as they made the Real currency stronger. We have presented a game between three players in which each agent maximizes its utility function in a sequential framework. The main result is that with everything else held constant the Brazilian government’s decision to tax foreign capital leads to an increase in domestic interest rates. Cost of capital should raise as a consequence of the strategic behavior of involved actors, namely the government, domestic banks and foreign investors. A cautious approach on those measures is then warranted.

Keywords: foreign capital, tax, utility function, interest rate, Brazil

JEL Classification: F30, F35, F42

pp. 5-10


Personal characteristics of remitting Ukrainian migrants in the Czech Republic

Ondřej Glazar (Charles University in Prague) and Wadim Strielkowski (Charles University in Prague)


This paper focuses on Ukrainian remitting migrants in the Czech Republic. Empirical evidence from two unique survey questionnaires carried out in Western Ukraine in 2010 and 2011 was used to test our hypotheses. The households in the 2010 survey were selected using the snowballing sampling in order to rule out migrants residing in countries, other than the Czech Republic. The households for the 2011 survey were selected by randomly choosing parishes and primary schools in Zakarpat’ye district of Western Ukraine. Both remittance-receiving households and households without remittances were included in both surveys.

The analysis of the data obtained with the help of both surveys helped us to build a profile of a typical Ukrainian migrant who is sending remittances. The paper’s outcomes contribute to the research literature on migration and remittances and bring some novel insights of migrations in Central and Eastern Europe. 

Keywords: international economics, migration, labour migration, Czech Republic, Ukraine, remittances, migration and development

JEL Classification: C33, F22, F24, J61

pp. 11-22


Development of the management system for support of small and medium-sized entrepreneurship at the interregional level

Dmitry Kolpakidi (Irkutsk State Linguistic University)


Currently, there are several regulatory documents defining the strategy of development of small and medium-sized entrepreneurship in the regions of Russia. In the Siberian Federal District (SFD) such document is the Strategy of the socio-economic development of Siberia until 2020. At the regional level all subjects of the SFD have programs of development of small and medium businesses. Thereby, existing management system for support of small and medium-sized entrepreneurship includes three levels - interregional, regional and municipal. However, the degree of development, both of entrepreneurship and of regional systems of management system for support of small and medium-sized businesses, differs significantly in each subject of the Russian Federation. Each region develops its own program of development of small and medium-sized enterprises, determines their own priorities, and selects the direction and instruments of support. It is necessary to continue formation of management system for support of small and medium-sized entrepreneurship at the interregional level, which would coordinate the actions of certain regions of the Russian Federation.

Keywords: Siberian Federal District; small and medium enterprises (SMEs); the strategy of socio-economic development

JEL classification: D24, R11

pp. 23-29


New Southern European intercultural societies: a challenge for their social services in a time of crises

María Esther Aretxabala (University of Deusto)


This paper tackles the topic of social services, both public and private, used for the integration of immigrants in the case of the Basque Country. Firstly, some data of inflows to that Spanish region and the legal aspects in migration policies and programmes fostered for the integration of immigrants are shown. Secondly, the analysis that explores the social services and devices provided from the public sphere and from the social organizations concerning the integration of international migrants is performed. For this purpose, a research survey was carried out with an empirical study from a methodological design for document analysis and legislation. Qualitative techniques were applied to different agents and institutions involved in policy-making and public services for the integration of foreign-born residents at the level of the Basque Country including social workers at basic social services and civil society institutions and associations related to the immigrant population. The results are intended to draw conclusions and suggestions for the improvement and enrichment of the intervention with migrant population in intercultural European societies in time of reconfigurations.

Keywords: international migration, social services, integration, social organizations, interculturalism

JEL Classification: F22, F29

pp. 30-42