Work

The case against a US sovereign wealth fund

Year: 2024

Type: article

Abstract: Sovereign wealth funds (SWFs), with assets under management reaching over $12.9 trillion in 2024, remain prominent global investors. The idea of creating a US national SWF gained attention during the 2024 US national elections, prompting debates about its merits. This paper reviews the latest academic research on SWFs and examines whether the United States should establish its own national SWF. We argue against this proposition for three key reasons: a US SWF is unnecessary due to the efficiency of existing capital markets, politically infeasible given deep partisan divides, and fiscally imprudent given the nation's significant debt and budgetary constraints.

Source: Financial Review

DOI: 10.1111/fire.12422

Authors: William L. Megginson, Xin Yue Zhou, Robert L. Gholson

Institutions: University of International Business and Economics, University of Oklahoma, Concordia College - Minnesota

Language: English

Topic: State Capitalism and Financial Governance

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W4405611911

FWCI: 0.683

Cites: 28

Cited by: 2

Related to: 10