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Impact of size of the National Asset Funds on Economic Development: Panel Data Analysis on Select Nations

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  • Mehmet AKYOL

    (Gümüþhane University, FEAS, Department of Economics, Gümüþhane, Turkey.)

  • Barýþ YILDIZ

    (Gümüþhane University, FEAS, Department of Economics, Gümüþhane, Turkey.)

Abstract

National asset funds are introduced to use the current transaction surplus, except the official reserves, in the most effective way possible. It is possible to cite the sources of these funds as commodity and non-commodity sources. The initial practices have been seen in oil-rich Gulf countries as well as Asian nations which have been successful in export activities. There are different national asset funds in a number of countries in the world exhibiting different management styles. The primary goals include ensuring sustainable development, creating sources, conducting development projects and accumulating savings for future generations. In addition, they are also used to deal with possible economic crises. But these funds are being criticized because they are allegedly not transparent and they can be used as independent budget by governments. Currently, the impacts of these funds upon economic growth have been a matter of academic curiosity. The purpsose of this paper is to analyze the impact of the size of the national asset funds upon economic growth by reliance on a panel analysis of six nations employing asset funds. The findings in the analysis show that increase in the size of the national asset funds has a positive impact upon economic growth of the nations.

Suggested Citation

  • Mehmet AKYOL & Barýþ YILDIZ, 2017. "Impact of size of the National Asset Funds on Economic Development: Panel Data Analysis on Select Nations," Journal of Economics Library, KSP Journals, vol. 4(2), pages 194-205, June.
    • Handle: RePEc:ksp:journ5:v:4:y:2017:i:2:p:194-205
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    More about this item

    Keywords

    National asset fund; Economic growth; Panel data analysis.;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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