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Sovereign Wealth Funds - The Activity And Its Consequences For The Global Economy

Author

Listed:
  • Izabela Pruchnicka-Grabias

    (Warsaw School of Economics)

Abstract

The paper aims at discussing the idea of Sovereign Wealth Funds, the range of their activity, as well as its consequences for the global financial stability. The author shows that these funds invest in different sectors of the economy and their assets, according to the predictions, are still supposed to grow in the future. Therefore, the role of SWFs in the economy is and will be more and more important. If one additionally takes into consideration that they influence the financial stability both in a positive and in a negative way and that there are not unified standards on investment strategies, governance of these institutions as well as transparency issues, it raises the need to control them globally and to create suitable law regulations.

Suggested Citation

  • Izabela Pruchnicka-Grabias, 2010. "Sovereign Wealth Funds - The Activity And Its Consequences For The Global Economy," Interdisciplinary Management Research, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 6, pages 510-522.
    • Handle: RePEc:osi:journl:v:6:y:2010:p:510-522
    as

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    References listed on IDEAS

    as
    1. Shai Bernstein & Josh Lerner & Antoinette Schoar, 2013. "The Investment Strategies of Sovereign Wealth Funds," Journal of Economic Perspectives, American Economic Association, vol. 27(2), pages 219-238, Spring.
    2. Edwin M. Truman, 2007. "Sovereign Wealth Funds: The Need for Greater Transparency and Accountability," Policy Briefs PB07-6, Peterson Institute for International Economics.
    3. Tamara Gomes, 2008. "The Impact of Sovereign Wealth Funds on International Financial Stability," Discussion Papers 08-14, Bank of Canada.
    4. Roland Beck & Michael Fidora, 2008. "The impact of sovereign wealth funds on global financial markets," Intereconomics: Review of European Economic Policy, Springer;German National Library of Economics;Centre for European Policy Studies (CEPS), vol. 43(6), pages 349-358, November.
    5. Mr. Heiko Hesse & Tao Sun, 2009. "Sovereign Wealth Funds and Financial Stability—An Event Study Analysis," IMF Working Papers 2009/239, International Monetary Fund.
    6. Roland Beck & Michael Fidora, 2008. "The impact of sovereign wealth funds on global financial markets," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 43(6), pages 349-358, November.
    7. Jason Kotter & Ugur Lel, 2008. "Friends or foes? The stock price impact of sovereign wealth fund investments and the price of keeping secrets," International Finance Discussion Papers 940, Board of Governors of the Federal Reserve System (U.S.).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Sovereign Wealth Funds; fi nancial stability; investments;
    All these keywords.

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • N3 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy

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