Effect of sovereign wealth funds in commodity‐exporting economies when commodity prices affect interest spreads

Shigeto Kitano and Kenya Takaku

Asian Economic Journal, 2023, vol. 37, issue 3, 267-292

Abstract: We reconsider the role of a sovereign wealth fund in commodity‐exporting economies facing recent volatile fluctuations of commodity prices due to the COVID‐19 shock. We examine the welfare‐improving effect of a sovereign wealth fund from the new perspective of the link between commodity prices and interest rate spreads, which is unique to emerging economies. We show that a sovereign wealth fund becomes more effective in improving welfare for commodity‐exporting economies with a stronger link between their commodity prices and interest rate spreads.

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/asej.12305

Related works:
Working Paper: Effect of Sovereign Wealth Funds in Commodity-Exporting Economies when Commodity Prices Affect Interest Spreads (2023)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:asiaec:v:37:y:2023:i:3:p:267-292

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1351-3958

Access Statistics for this article

Asian Economic Journal is currently edited by Sung Yun-Wing and Shigeyuki Abe

More articles in Asian Economic Journal from East Asian Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().