The Brazilian venture capital industry and its strategic role in closing the financing gap of SMEs

This discussion paper is a contribution of the Brazilian Government to the 2006 Annual Conference of the OECD High-level Conference on "Better Financing for Entrepreneurship and SMEs" to be held in Brasilia, Brazil on 27-30 March 2006. It has been prepared by The Center for Studies in Private Equity and Venture Capital of EAESP-Fundação Getúlio Vargas under the auspices of ABDI – Agência Brasileira para o Desenvolvimento Industrial – an agency of the Ministry of Industrial Development and Foreign Trade, in cooperation with ABVCAP – The Brazilian Association of Private Equity and Venture Capital

Capital misallocation and mitigating policies

The purpose of this work is to study the role for government in mitigating capital misallocation. We develop an entrepreneurship model in which heterogeneous producers face collateral constraints on production, but can hedge idiosyncratic shocks. Hedging works as a tool for reallocating resources to states in which they are more productively deployed, and can alleviate the effect of the financial frictions and be a counteracting force to capital misallocation. Government incentives to hedging improve workers’ welfare in steady state through an increase in TFP and wages. The intervention leads to a reduction in the rate of return of entrepreneurs and an increase in wealth dispersion. These two effects cause entrepreneurial welfare to decrease.

Derivatives, the shape of international capital flows and the virtues of prudential regulation

Includes bibliography

The new Basel capital accord and developing countries: issues, implications and policy proposals

Includes bibliography

Capital-account and counter-cyclical prudential regulations in developing countries

Includes bibliography

Macroeconomic stability and investment allocation of domestic pension funds in emerging economies: the case of Chile

Includes bibliography

Opportunities for trade and investment between Latin America and Asia-Pacific: the link with APEC

Includes bibliography

Human capital formation and the linkage between trade and poverty: the cases of Costa Rica and Nicaragua

Includes bibliography

Human capital formation and the linkage between trade and poverty: the cases of Costa Rica and Nicaragua

Includes bibliography

Latin America and Asia Pacific trade and investment relations at a time of international financial crisis

Includes Bibliography

Trade and investment rules: Latin American perspectives

Includes bibliography

Trade and investment promotion between Asia-Pacific and Latin America: present position and future prospects

Includes bibliography

Capital-account and counter-cyclical prudential regulations in developing countries

Includes bibliography

Implicit R&D strategy and investment-linked R&D: a study of the R&D programme of the Argentina steel firm Acindar, SA

Includes bibliography

Saving and investment under external and fiscal constraints

Includes bibliography