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What explains the size of Sovereign Wealth Funds? A panel analysis (2008-2018)

Author

Listed:
  • Anna Balestra

    (Centre of Applied Economics (CSEA) - Università Cattolica del Sacro Cuore, Milano)

  • Raul Caruso

    (Department of Economic Policy - Università Cattolica del Sacro Cuore, Milano CESPIC, Catholic University “Our Lady of Good Counsel”)

  • Marco Di Domizio

    (Department of Political Science, University of Teramo)

Abstract

This paper empirically investigates the economic correlates of the size of Sovereign Wealth Funds (SWFs). We exploit a panel of 28 SWFs for the period 2008-2018. One general finding we assert from this study is that the impact of financial market dynamics on the size of SWFs, while of comparable magnitude to the influence of the domestic economy, exhibits a greater degree of stability. Among other factors, of particular interest is the inverse correlation estimated between the size of SWFs and the existence of armed conflicts. The quantitative reduction in the size of SWFs in the presence of an armed conflict has been estimated to range between 25% and 37%.

Suggested Citation

  • Anna Balestra & Raul Caruso & Marco Di Domizio, 2023. "What explains the size of Sovereign Wealth Funds? A panel analysis (2008-2018)," Working Papers 1021, European Centre of Peace Science, Integration and Cooperation (CESPIC), Catholic University 'Our Lady of Good Counsel'.
    • Handle: RePEc:pea:wpaper:1021
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    More about this item

    Keywords

    Sovereign Wealth Funds; Assets Under Management; MSCI World Index; Conflicts; Globalization;
    All these keywords.

    JEL classification:

    • F01 - International Economics - - General - - - Global Outlook
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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