Proceedings of the Conference on Transnational Corporations and Development in Brazil (2013) TABLE OF CONTENTS Section I Macroeconomics and Policies Political and Business Cycle Theory: The Brazilian Empirical Evidence from 1997 to 2013 Julyana Covre and Thyago Américo Schio……………………………….………………………...1 The Quality of Monetary Policy in Brazil: Adherence and COPOM’s Directors Turnover Effect Allan Silveira dos Santos, Maria Helena Ambrosio Dias and Joilson Dias………...................10 Interaction between Macroeconomics Variables and IBOVESPA, Brazilian Stock Market’s Index: Analysis from a VEC Model Allan Silveira dos Santos, Angelo Rondina Neto, Eliane Cristina de Araujo, Luma De Oliveira and Mateus Boldrine Abrita……………….………….………………….……32 Influence of Exchange Variation and Demand Conditions in the Determination of IPCA in Brazil Erica Oliveira Gonzales, Allan Silveira dos Santos, Eliane Cristina de Araujo…………...….49 Capital Controls: Empirical Analysis of Effectiveness of the IOF in Brazil Vinicius Borba da Costa and and Eliane Cristina de Araújo Sbardellati……………………..…64 Section II International Economics and Development Lead-Lag Effect in the Stock Market of the Member States of the BRICS Julyerme Matheus Tonin, João Ricardo Tonin, Marina da Silva Cunha and José Carlos Bornia…………………………………………….…………………………………….81 World Technological Competences Captured by Multinationals in Environmental Technologies Ana Urraca-Ruiz and Gemma Durán-Romero………..………………….…………………..…..97 Dairy Agro-Industry in Brazil and Transnational Corporations: Analysis of the Opportunities and Challenges Joel Fiegenbaum and Júlio Eduardo Rohenkohl……….………………..……………………...116 Impacts of Demand and Technology in Brazilian Economic Growth Elcio Cordeiro da Silva, Daniel Lelis de Oliveira, José Tarocco Filho and Umberto Antonio Sesso Filho…………………………………………………….……….…132 -1- Table of Contents Section III Sectional Studies and Industrial Analysis Structural Changes and External Vulnerabilities in Brazilian Economy Rossana Lott Rodrigues, João Carlos Lopes, João Dias and Antonio Carlos Moretto…..…141 Sectoral Analysis of Foreign Direct Investment and Growth in Brazil from 1996 to 2009 Giovani da Silva Oliveira, Katy Maia and Aricieri Devidé Júnior………………………..…..…159 Brazilian Dairy Products Sector in the 1990s: An Input-Output Analysis Cleise Maria de Almeida and Emerson Martins Hilgemberg…………………………………..175 Frictions in Brazil’s Labor Market: the Role of Job Destruction Luma de Oliveira, Joilson Dias and Maria Helena Ambrosio Dias……..……………….….....196 Agribusiness Sugar Cane in Brazil: A Case Study Celso Daniel Seratto, Ednaldo Michellon and Natalino Henrique Medeiros…………………212 Section IV Special Topics on Brazilian Economy Price Asymmetry and Basis Risk of BM&F Bovespa Hydrous Ethanol Future Contract: Dynamics of Biofuels Markets in Brazilian South-Center João Ricardo Tonin, Antonio Augusto de Jesus Godoy, Julyerme Matheus Tonin and Joilson Dias……………………………………………………………………......…………..229 University-Enterprise Partnerships in Brazilian Amazon: Obstacles, Dilemmas and Challenges Ana Paula Bastos, Maurício Serra, Leandro Almeida and Marcia Juca Diniz.………….……247 Income Convergence among Municipalities of Parana and Sao Paulo States Jorge Leandro Delconte Ferreira, José Luiz Parré and Maria LuziaLomba de Sousa……...267 Human Capital and Health Status in Brazil Letícia Xander Russo and Joilson Dias……………………………………………………….….282 Is There Bubble Price in Real Estate of Ceará? A Post-Keynesian Approach Marcelo Miranda de Melo…………………………………….……………………………….......296 Editorial Notes…………………………………………………………………………………..………307 -2-