Legitimacy and Market Development Risks of Sovereign Wealth Funds
Economics, Finance, & Quantitative Analysis
Sovereign Wealth Funds objectives can be classified as either demand stabilisation, supply side strengthening, or wealth conservation. These objectives cannot only be explained by domestic development needs, they also show different profiles of market development and political legitimacy risks. Specifically, we find that supply side strengtheners are on average exposed to both legitimacy and market development risks. Demand stabilisers carry only market development risks. Wealth conservation funds have the least exposure to either risk.
Marcus Marktanner and Michael Hanna, “Legitimacy and Market Development Risks of Sovereign Wealth Funds,” International Journal of Public Policy, Vol. 9, No. 4/5/6, 2013, 400-415.