Assessment of the Economic Potential of Sovereign Wealth Funds Cover Image

Assessment of the Economic Potential of Sovereign Wealth Funds
Assessment of the Economic Potential of Sovereign Wealth Funds

Author(s): Olga Alekseevna Bykanova, Ravil Gabdullaevich Akhmadeev, Mikhail Evgenievich Kosov, Vadim Vitalievich Ponkratov, Vladimir Sergeevich Osipov, Yulia Vyacheslavovna Ragulina
Subject(s): Economy, Economic policy, Economic development, Fiscal Politics / Budgeting
Published by: Reprograph
Keywords: macroeconomics; fiscal policy; sovereign wealth funds; export potential; GDP per capita; global energy prices;

Summary/Abstract: Being the total of the state funds, sovereign wealth funds are generally accumulated in budget revenues as the surplus from sale of fossil fuels or non- oil and gas resources and aim to achieve specific macroeconomic goals set. Applying the method of correlation analysis, we evaluated the nature and degree of the relationship between the selected parameters. The Pearson simple linear correlation coefficient was used to measure the link between the rows. The relationship of x and y is considered linear if a straight line drawn through the center of the cluster of points presents the most appropriate approximation of the observed correlation. Using the method of correlation analysis to study sovereign wealth funds, we could formulate and prove the following hypotheses. Sovereign wealth funds generated from non- commodity exports do not depend on the size of the country’s GDP; the value of the correlation coefficient equaled 0.5998, which implies the weak dependence of the studied parameters. A similar pattern was observed when studying the sovereign wealth funds formed by hydrocarbon exports. Besides, no significant linear relationship was found when studying the dependence of the sovereign wealth funds and the impact of the potential of the country’s explored reserves.

  • Issue Year: XII/2017
  • Issue No: 47
  • Page Range: 70-74
  • Page Count: 5
  • Language: English