Ruth Mason

Sovereign Wealth Funds and the Efficient Management of the Wealth of Nations

PUBLISHER
Tax Notes
DATE
2008-09-29
 

Abstract

This comment considers arguments for and against stricter regulation of sovereign wealth funds (SWFs), either by tightening securities laws or increasing the tax burden on SWFs. Concerns about SWFs fall into two broad categories: fears that (1) investments will be politically, rather than financially, motivated, and that (2) to the extent that SWFs are politically motivated in their investment choices, they are inefficient investors that distort capital markets. While acknowledging these legitimate concerns, this comment explains how foreign equity investment by such funds may paradoxically promote global capital market efficiency.

Citation

Ruth Mason, Sovereign Wealth Funds and the Efficient Management of the Wealth of Nations, 120 Tax Notes 1321 (2008).
 

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