Sovereign Wealth Funds, Transnational Law, and the New Paradigms of International Financial Relations

Abstract

International financial relations have largely been defined by cross-border trade, foreign direct investments, and global banking relations. This paper demonstrates that another activity, sovereign investments by special vehicles known as sovereign wealth funds, is rapidly redefining the traditional paradigms, providing both opportunities for further integration of the financial markets as well as posing particular challenges for policy makers.

Keywords: sovereign wealth funds, SWFs, sovereign investing, CFIUS, Committee on Foreign Investment in the United States

JEL Classification: F00, F02, F21, F33, F42, G1, G15, G18, G20, G28, K00, K22, K2, K33, N2