IDEAS home Printed from https://ideas.repec.org/a/anr/reseco/v14y2022p621-646.html
   My bibliography  Save this article

Sovereign Wealth Funds in Theory and Practice

Author

Listed:
  • Alexander James

    (Department of Economics, University of Alaska Anchorage, Anchorage, Alaska, USA)

  • Timothy Retting

    (Department of Economics, University of Wyoming, Laramie, Wyoming, USA)

  • Jason F. Shogren

    (Department of Economics, University of Wyoming, Laramie, Wyoming, USA)

  • Brett Watson

    (Institute of Social and Economic Research, University of Alaska Anchorage, Anchorage, Alaska, USA)

  • Samuel Wills

    (Queens’ College, University of Cambridge, Cambridge, United Kingdom)

Abstract

Are natural resources a curse or a blessing? The answer may depend on how natural wealth is managed. By transforming a temporary windfall into a permanent stock in the form of a sovereign wealth fund, resource-rich economies can avoid volatility and Dutch disease effects, save for future generations, and invest locally. We review the theory behind these resource funds and explore the empirical evidence for their success. Our review is complemented by case studies that highlight some of the more nuanced features, behavior, and effects of resource funds. While the theoretical research highlights the situational success of funds, empirical examinations are minimal. We discuss possible reasons for this gap in the literature and, in doing so, highlight some of the challenges associated with empirical research in this area and discuss possible paths forward.

Suggested Citation

  • Alexander James & Timothy Retting & Jason F. Shogren & Brett Watson & Samuel Wills, 2022. "Sovereign Wealth Funds in Theory and Practice," Annual Review of Resource Economics, Annual Reviews, vol. 14(1), pages 621-646, October.
    • Handle: RePEc:anr:reseco:v:14:y:2022:p:621-646
    DOI: 10.1146/annurev-resource-111920-015758
    as

    Download full text from publisher

    File URL: https://doi.org/10.1146/annurev-resource-111920-015758
    Download Restriction: Full text downloads are only available to subscribers. Visit the abstract page for more information.
    File URL: https://libkey.io/10.1146/annurev-resource-111920-015758?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:anr:reseco:v:14:y:2022:p:621-646. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: http://www.annualreviews.org (email available below). General contact details of provider: http://www.annualreviews.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.