Anthopoulos, Pitelis & Liakou: The Nature, Performance and Economic Impact of Sovereign Wealth Funds

Abstract:

We analyse the nature and economic performance of sovereign wealth funds (SWFs). Following a historical excursion, we discuss extant views on the nature, performance, economic impact and regulation of SWFs. Following these we pinpoint some limitations and outline some elements of a political economy-based conceptual framework, required for a more comprehensive appreciation of the issue.

And more from the conclusion:

SWFs are part and parcel of a country’s developmental industrial policies (DIPs) as well as its approach to inter-national integration and international trade and investment policies (ITIPs) and supra-national governance. However these issues have not been integrated, often not even raised, in the SWFs literature. A major characteristic of DIPs and ITIPs refers is that they can be diametrically opposed between nations and in terms of underlying economic theory (Pitelis, 2014). It is important to place SWFs within a framework of sustainable global value creation, and assess their implications and the requisite regulatory policies in its context. This is beyond the scope of this deliverable. The issue is pursued in WP6 that discusses issues of supra-national governance and the opportunities for Europe to benefit by aligning the legitimate interests of SWFs with its own interests.

Available for download here.

 

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