From “Resources Policy”: Traditional Wisdom about the Types of Countries that Create SWFs No Longer Hold

SovereigNET Research Affiliate Matthew Gouett has written a piece called, “New wealth, New wisdom: Updating the narrative of sovereign wealth fund creation,” published in the March 2020 issue of the Resources Policy journal.

The piece argues that traditional wisdom about the types of countries that create SWFs is no longer relevant, as resource dependence and the level of GDP growth serve as some of the most robust indicators of SWF creation. Additionally, Gouett argues that international reserve balances are not a significant predictor of SWF creation, and evidence that current account surpluses lead to SWF creation is limited.