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How to Spend It: Commodity and Non-Commodity Sovereign Wealth Funds


  • Helmut Reisen



Sovereign wealth funds have become important players in global financial markets. But their investments have repeatedly raised concerns, such as fear of industrial espionage or geopolitical threats. This paper argues that the principal motivation for setting up SWFs should put such concerns into the appropriate perspective. Development economics can explain both the funding sources and the motives that have led to the recent SWF boom, thus helping to prevent the imposition of investment restrictions in OECD countries.

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  • Helmut Reisen, 2008. "How to Spend It: Commodity and Non-Commodity Sovereign Wealth Funds," OECD Development Centre Policy Briefs 38, OECD Publishing.
  • Handle: RePEc:oec:devaab:38-en

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    References listed on IDEAS

    1. Kenneth Kasa, 1997. "Does Singapore invest too much?," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue may15.
    2. Dong He & Wenlang Zhang & Jimmy Shek, 2007. "How Efficient Has Been China'S Investment? Empirical Evidence From National And Provincial Data," Pacific Economic Review, Wiley Blackwell, vol. 12(5), pages 597-617, December.
    3. Aaditya Mattoo & Arvind Subramanian, 2009. "Currency Undervaluation and Sovereign Wealth Funds: A New Role for the World Trade Organization," The World Economy, Wiley Blackwell, vol. 32(8), pages 1135-1164, August.
    4. Corden, W Max & Neary, J Peter, 1982. "Booming Sector and De-Industrialisation in a Small Open Economy," Economic Journal, Royal Economic Society, vol. 92(368), pages 825-848, December.
    5. van der Ploeg, Frederick, 2006. "Challenges and Opportunities for Resource Rich Economies," CEPR Discussion Papers 5688, C.E.P.R. Discussion Papers.
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    Cited by:

    1. Murtinu, Samuele & Scalera, Vittoria G., 2016. "Sovereign Wealth Funds' Internationalization Strategies: The Use of Investment Vehicles," Journal of International Management, Elsevier, vol. 22(3), pages 249-264.
    2. Steffen Kern, 2008. "Control Mechanisms for Sovereign Wealth Funds in Selected Countries," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 6(4), pages 41-48, December.
    3. Bahgat, Gawdat, 2011. "Sovereign wealth funds in the Gulf - an assessment," LSE Research Online Documents on Economics 55015, London School of Economics and Political Science, LSE Library.
    4. Sun, Xiaolei & Li, Jianping & Wang, Yongfeng & Clark, Woodrow W., 2014. "China's Sovereign Wealth Fund Investments in overseas energy: The energy security perspective," Energy Policy, Elsevier, vol. 65(C), pages 654-661.
    5. 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.
    6. Alhashel, Bader, 2015. "Sovereign Wealth Funds: A literature review," Journal of Economics and Business, Elsevier, vol. 78(C), pages 1-13.
    7. Steffen Kern, 2009. "Sovereign Wealth Funds : New Economic Realities and the Political Responses," Revue d'Économie Financière, Programme National Persée, vol. 9(1), pages 255-269.
    8. Steffen Kern, 2009. "Fonds souverains : nouvelles réalités économiques et réponses politiques," Revue d'Économie Financière, Programme National Persée, vol. 9(1), pages 275-289.

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