Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
8942397 | Journal of Commodity Markets | 2018 | 21 Pages |
Abstract
In this paper we show that domestic economic and political characteristics can explain why some countries established a Sovereign Wealth Funds (SWFs) and others not. We find that 1) the existence of natural resources profits, 2) the government structure and 3) the ability to invest in a socially beneficial way in the domestic economy can explain this choice. At the same time these same factors do not relate to the size of the national savings. We use a sample of countries that established a SWF in the period 1998-2008 and compare them to those that did not set up a fund in the same period. The results suggest that SWFs tend to be established in autocratically run countries that have difficulties finding suitable opportunities for domestic investments.
Related Topics
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Energy
Renewable Energy, Sustainability and the Environment
Authors
J.-F. Carpantier, W.N. Vermeulen,