Sovereign Wealth Funds and the Efficient Management of the Wealth of Nations
University of Connecticut School of Law
August 1, 2008
Tax Notes, September 29, 2008
This comment considers arguments for and against stricter regulation of sovereign wealth funds (SWFs), either by tightening securities laws or increasing the tax burden on SWFs. Concerns about SWFs fall into two broad categories: fears that (1) investments will be politically, rather than financially, motivated, and that (2) to the extent that SWFs are politically motivated in their investment choices, they are inefficient investors that distort capital markets. While acknowledging these legitimate concerns, this comment explains how foreign equity investment by such funds may paradoxically promote global capital market efficiency.
Number of Pages in PDF File: 2
Keywords: sovereign wealth funds, taxation
JEL Classification: H20, H87, K34Accepted Paper Series
Date posted: August 22, 2008 ; Last revised: October 30, 2008
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo1 in 0.609 seconds