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Framing Sovereign Wealth Funds: What We Know and Need to Know

11 Pages Posted: 31 Jan 2009  

Christopher Balding

Peking University - HSBC School of Business; ESADE University Faculties - ESADEgeo

Date Written: January, 30 2009


Sovereign wealth funds are poorly understood by policy makers and scholars. Research has provided valuable insights into their behavior and impact on financial markets. To further our understanding of sovereign wealth funds, it is important that we gain a better understanding of the economics and political landscape. Sovereign wealth fund independence target specific issues faced by commodity dependent economies and represent challenges to investment target countries. The rhetorical impulses of critics, obscures the issue of equal treatment the cornerstone of the international economic system. Policy makers must work to deal with sovereign wealth funds within the principle of equal treatment and scholar must make appropriate comparisons of investment behavior rather than theoretical unreliable assertions about profit motives.

Keywords: sovereign wealth funds, sovereign wealth fund, equal treatment, international financial architecture, home bias

JEL Classification: F30, F50

Suggested Citation

Balding, Christopher, Framing Sovereign Wealth Funds: What We Know and Need to Know (January, 30 2009). Available at SSRN: or

Christopher Balding (Contact Author)

Peking University - HSBC School of Business ( email )

University Town
Nanshan District
Shenzhen, Guang Dong 518055

ESADE University Faculties - ESADEgeo

Mateo Inurria, 25-27
Madrid, 28036

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