Economics at your fingertips  

Leviathan is in Action? The Political Motivation behind the Outbound Investments of SWFs

Huadong Chang and Guozhi An

Advances in Management and Applied Economics, 2019, vol. 9, issue 5, 4

Abstract: This paper studies the role of bilateral political relationship in the decision-making of sovereign wealth funds (SWFs). Based on the detailed data of SWFs’ outbound investments in 2007-2017, this paper finds that SWFs tend to invest in countries with distant bilateral political relations. Furthermore, bilateral political relationship plays an important role in the choice of investment area and the determination of investment amount. The results of this study show that, unlike rational private investors who seek to maximize benefits and minimize risks, SWF's outbound investments have strong political motives. JEL classification numbers: F21 G15 G18Keywords: Sovereign Wealth Fund; Bilateral Political Relationship; Outbound Investments.

Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
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:

Access Statistics for this article

More articles in Advances in Management and Applied Economics from SCIENPRESS Ltd
Bibliographic data for series maintained by Eleftherios Spyromitros-Xioufis ().

Page updated 2020-04-28
Handle: RePEc:spt:admaec:v:9:y:2019:i:5:f:9_5_4