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A few sovereigns more: the rise of sovereign wealth funds

Author

Listed:
  • Will Devlin

    (Treasury, Government of Australia)

  • Bill Brummitt

    (Treasury, Government of Australia)

Abstract

One of the most striking developments in international financial markets over recent years has been the emergence of dedicated government investment vehicles as an important investor class. These so-called ‘sovereign wealth funds' (SWFs) have grown rapidly both in size and number, fuelled by a sharp and sustained rise in energy and commodity prices and by large current account surpluses among the export-oriented economies of East Asia. This paper finds that while these funds may not pose a direct threat to financial stability, concerns over a lack of transparency and non-commercial investment motives may give rise to an increase in 'financial protectionism'.

Suggested Citation

  • Will Devlin & Bill Brummitt, 2007. "A few sovereigns more: the rise of sovereign wealth funds," Economic Roundup, The Treasury, Australian Government, issue 4, pages 119-136, December.
    • Handle: RePEc:tsy:journl:journl_tsy_er_2007_4_3
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    File URL: http://archive.treasury.gov.au/documents/1329/PDF/07_A_few_sovereigns_more_the_rise_of_sovereign_wealth_funds.pdf
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    References listed on IDEAS

    as
    1. Edwin M. Truman, 2007. "Sovereign Wealth Funds: The Need for Greater Transparency and Accountability," Policy Briefs PB07-6, Peterson Institute for International Economics.
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    Cited by:

    1. Martin Gould, 2010. "Managing manna from below: sovereign wealth funds and extractive industries in the Pacific," Economic Roundup, The Treasury, Australian Government, issue 1, pages 63-86, April.
    2. Alhashel, Bader, 2015. "Sovereign Wealth Funds: A literature review," Journal of Economics and Business, Elsevier, vol. 78(C), pages 1-13.
    3. Kerry Liu, 2017. "Singapores Temasek Holdings Control Mechanisms and the Performance of the Firms Controlled by Temasek," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 7(2), pages 188-205, February.
    4. Richard Heaney & Larry Li & Vicar Valencia, 2011. "Sovereign wealth fund investment decisions: Temasek Holdings," Australian Journal of Management, Australian School of Business, vol. 36(1), pages 109-120, April.
    5. Ashby H B Monk, 2011. "Sovereignty in the Era of Global Capitalism: The Rise of Sovereign Wealth Funds and the Power of Finance," Environment and Planning A, , vol. 43(8), pages 1813-1832, August.

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    More about this item

    Keywords

    foreign direct investment; foreign ownership; sovereign wealth funds; transparency;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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