Abstract

http://ssrn.com/abstract=1900209
 


 



When Clashes Spur Rules: Domestic Politics of Sovereign Wealth Funds Institutionalization


Di Wang


Texas A&M University - Department of Political Science

Quan Li


Texas A&M University - Department of Political Science

August 2011

APSA 2011 Annual Meeting Paper

Abstract:     
Truman’s score shows a remarkable variation in whether Sovereign Wealth Funds (SWFs) institutionalize their investment. Some have explicit policies on fiscal treatment and investment behavior; others remain obscure. What explains these variations? This article argues that SWF host countries with multiple veto players are more institutionalized, i.e., have specified more “rules of game” for the SWFs because there are more conflicts of interests, and information asymmetries are more acute. This veto player approach to explaining variation in institutionalization of SWF investment is tested using Truman’s scoreboard data. The statistical analysis shows a strong correlation between the number of veto players and the institutionalization of SWF investment.

Number of Pages in PDF File: 22

Keywords: Sovereign Wealth Fund, Institutionalization, Veto players

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Date posted: August 1, 2011 ; Last revised: August 26, 2011

Suggested Citation

Wang, Di and Li, Quan, When Clashes Spur Rules: Domestic Politics of Sovereign Wealth Funds Institutionalization (August 2011). APSA 2011 Annual Meeting Paper. Available at SSRN: http://ssrn.com/abstract=1900209

Contact Information

Di Wang (Contact Author)
Texas A&M University - Department of Political Science ( email )
College Station, TX 77843
United States
Quan Li
Texas A&M University (TAMU) - Department of Political Science ( email )
College Station, TX 77843-4353
United States
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