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Sovereign Wealth Funds : a Developing Country Perspective

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  • Stephany Griffith-Jones
  • José Antonio Ocampo

Abstract

[eng] This paper details the evolution of foreign exchange assets in different parts of the developing world, the relative importance of the current vs. the capital accounts as the source of those assets, and discusses some categorizations of sovereign wealth funds (SWFs). Then, it briefly reviews the literature on the determinants of reserve accumulation in developing countries. Then, it develops the analysis of the motives for the accumulation of foreign exchange assets, differentiating between the role played by the current and the capital accounts, and between the structural vs. cyclical determinants of such accounts. Lastly, it analyzes the implications of the analysis for regional financial architectures and it draws some conclusions. . JEL Classification : F30, G29, O16

Suggested Citation

  • Stephany Griffith-Jones & José Antonio Ocampo, 2009. "Sovereign Wealth Funds : a Developing Country Perspective," Revue d'Économie Financière, Programme National Persée, vol. 9(1), pages 241-254.
    • Handle: RePEc:prs:recofi:ecofi_1767-4603_2009_hos_9_1_5511
    DOI: 10.3406/ecofi.2009.5511
    Note: DOI:10.3406/ecofi.2009.5511
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    References listed on IDEAS

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    1. Ocampo, José Antonio, 2007. "La macroeconomía de la bonanza económica latinoamericana," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    2. Dani Rodrik, 2006. "The social cost of foreign exchange reserves," International Economic Journal, Taylor & Francis Journals, vol. 20(3), pages 253-266.
    3. Michael P. Dooley & David Folkerts-Landau & Peter M. Garber, 2005. "An essay on the revived Bretton Woods system," Proceedings, Federal Reserve Bank of San Francisco, issue Feb.
    4. Graham Bird & Ramkishen Rajan, 2003. "Too Much of a Good Thing? The Adequacy of International Reserves in the Aftermath of Crises," The World Economy, Wiley Blackwell, vol. 26(6), pages 873-891, June.
    5. Joshua Aizenman, 2008. "Large Hoarding Of International Reserves And The Emerging Global Economic Architecture," Manchester School, University of Manchester, vol. 76(5), pages 487-503, September.
    6. José Ocampo, 2007. "The Instability and Inequities of the Global Reserve System," International Journal of Political Economy, Taylor & Francis Journals, vol. 36(4), pages 71-96.
    7. Joshua Aizenman & Reuven Glick, 2007. "Sovereign wealth funds: stumbling blocks or stepping stones to financial globalization?," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue dec14.
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    Citations

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    Cited by:

    1. Jost, Thomas, 2009. "Sovereign Wealth Funds: Size, economic effects and policy reactions," Weidener Diskussionspapiere 13, University of Applied Sciences Amberg-Weiden (OTH).
    2. Alejandro Jara & Camilo Tovar, 2008. "Monetary and financial stability implications of capital flows in Latin America and the Caribbean," BIS Papers, Bank for International Settlements, number 43.
    3. Doina-Ana Draniceanu & Elena-Doina Dascalu & Lucian-Florin Onisor, 2014. "Sovereign Wealth Funds –Activity, Development and Forecasting," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 168-183, December.
    4. Javier Santiso, 2009. "Les fonds souverains : des acteurs clés dans la nouvelle géographie des richesses," Revue d'Économie Financière, Programme National Persée, vol. 9(1), pages 315-342.
    5. Dariusz Urban, 2011. "Macroeconomic Considerations and Motives of Sovereign Wealth Funds Activity," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 5(2), June.
    6. Reisen, Helmut, 2008. "How to spend it: Commodity and non-commodity sovereign wealth funds," Research Notes 28, Deutsche Bank Research.
    7. Schalast, Christoph & Tiemann, Marcel & Tuppi, Pascal, 2009. "Staatsfonds - neue Akteure an den Finanzmärkten?," Frankfurt School - Working Paper Series 114, Frankfurt School of Finance and Management.
    8. Adriana Arreaza & Luis Miguel Castilla & Cristina Fernández, 2009. "The Coming of Age of Sovereign Wealth Funds," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 1(1), pages 25-41, January.
    9. Javier Santiso, 2009. "Sovereign Development Funds : Key Financial Actors of the Shifting Wealth of Nations," Revue d'Économie Financière, Programme National Persée, vol. 9(1), pages 291-315.
    10. Bank for International Settlements, 2009. "Capital flows and emerging market economies," CGFS Papers, Bank for International Settlements, number 33, december.
    11. Ilene Grabel, 2013. "The Rebranding of Capital Controls in an Era of Productive Incoherence," Working Papers wp318, Political Economy Research Institute, University of Massachusetts at Amherst.
    12. Carolina Alves & Vivienne Boufounou & Konstantinos Dellis & Christos Pitelis & Jan Toporowski, 2016. "Synthesis Report; Empirical analysis for new ways of global engagement," Working papers wpaper163, Financialisation, Economy, Society & Sustainable Development (FESSUD) Project.
    13. I. Anthopoulos & C. Pitelis & C. Liakou, 2016. "The Nature, Performance and Economic Impact of Sovereign Wealth Funds," Working papers wpaper135, Financialisation, Economy, Society & Sustainable Development (FESSUD) Project.

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    More about this item

    JEL classification:

    • F30 - International Economics - - International Finance - - - General
    • G29 - Financial Economics - - Financial Institutions and Services - - - Other
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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