Sovereign Wealth Fund Decision Scorecard (DSC) - Macroeconomic Evidences from Emerging Economics

International Journal of Research and Development - A Management Review (IJRDMR), Vol. 2, No. 1, 2013

7 Pages Posted: 12 Sep 2013 Last revised: 11 Nov 2013

See all articles by Manvinder Singh Pahwa

Manvinder Singh Pahwa

Manipal University Jaipur

Amanpreet Singh Chopra

University of Petroleum & Energy Studies (UPES)

Date Written: March 18, 2013

Abstract

Sovereign Wealth Funds (SWFs) with combined asset under management of around $4.8 Trillion have emerged as major power in the financial world. However, literature which has empirically analyzed the decision variables impacting the establishment of these funds is limited. Authors has identified and collaborated list of 63 variables which were then rationalized to list of 30 variables that may have affected establishment of Sovereign Wealth Fund for Emerging economies of China, Russia, Mexico and Brazil and analyzed the static state of these variables at the time of establishment of these funds. For India another set of 30 variables were identified and the static state of these variables was then analyzed with respect to macroeconomic and socio-political environment in the country as on 2011. Authors observed the paradox of political stability coupled with low scoring on corruption barometer for all these emerging economies. Author also argue, that all the countries including India do confirm to reserve adequate matrice but risk of capital flight, current account and fiscal account deficit with social and infrastructure trade-off will be major debate issues and weigh heavily against the creation of such fund.

Keywords: International Finance, Sovereign Wealth Funds, Macroeconomics, Forex Reserves

JEL Classification: Q43, Q41, E61, H56, L48

Suggested Citation

Pahwa, Manvinder Singh and Chopra, Amanpreet Singh, Sovereign Wealth Fund Decision Scorecard (DSC) - Macroeconomic Evidences from Emerging Economics (March 18, 2013). International Journal of Research and Development - A Management Review (IJRDMR), Vol. 2, No. 1, 2013, Available at SSRN: https://ssrn.com/abstract=2323860

Manvinder Singh Pahwa

Manipal University Jaipur ( email )

VPO - Dehmi Kalan, Tehsil Sanganer
Off Jaipur - Ajmer Expressway
Jaipur, 303007
India

Amanpreet Singh Chopra (Contact Author)

University of Petroleum & Energy Studies (UPES) ( email )

Energy Acres
P.O. Bidholi via Premnagar,
Dehradun, 248007
India

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