IDEAS home Printed from https://ideas.repec.org/a/eut/journl/v18y2014i2p131.html
   My bibliography  Save this article

Foreign Investment as Main Factor for Successful Funds and Its Effect on Trade Balance Strategic Technology Adoption under Technological Uncertainty

Author

Listed:
  • Reza Mohseni

    (Faculty of Economic and Political Sciences, Shahid Beheshti University, Tehran, Iran.)

  • Akram Charmgar

    (Department of Economics, University of Semnan, Semnan, Iran.)

Abstract

National wealth funds have initiated their activities comprehensively over last two decades. National wealth fund is a governmental investment fund financed by surpluses of payments’ balance, official foreign currency operations, revenues of privatization, payments for governmental transfers, fiscal surpluses and export revenues. However, the financing for this investment requires foreign currency reserve where management of current account’s balance plays important role. First of all, some explanations are presented in this paper about national development fund and then in regard to the study made about successful funds which used foreign investment (direct or indirect) as investment strategy, we will consider the foreign investment. Next, regarding the role of the fund in trade balance and its effect on foreign investment, we will consider the relationship between fund and trade balance in short-term and long-term. Results shown that many successful funds prevented formation of possible corruption following the weakness of institutions to designate fund for inner sectors. Therefore, increase in foreign investment cause positive condition of trade balance in Iran. Whereas China is a new emerged economy with positive trade balance, investment in this country and formation of better relationship and cooperation provide privileges for this country.

Suggested Citation

  • Reza Mohseni & Akram Charmgar, 2014. "Foreign Investment as Main Factor for Successful Funds and Its Effect on Trade Balance Strategic Technology Adoption under Technological Uncertainty," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 18(2), pages 131-151, Spring.
  • Handle: RePEc:eut:journl:v:18:y:2014:i:2:p:131
    as

    Download full text from publisher

    File URL: ftp://80.66.179.253/eut/journl/20142-7.pdf
    Download Restriction: no
    ---><---

    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:eut:journl:v:18:y:2014:i:2:p:131. 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: [z.rahimalipour] (email available below). General contact details of provider: https://edirc.repec.org/data/fecutir.html .

    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.