Publication

This paper examines the potential opportunities and risks of using sovereign wealth funds (SWF) to provide financing for domestic investments. In particular, it focuses on domestic market investments by SWFs in resource-driven countries and explores the conditions that affect SWF's ability to foster economic diversification and mobilize private capital. The authors then propose a set of checks and balances to help ensure that the use of SWFs as a source for domestic investments does not undermine macroeconomic stability and contributes to the accumulation of national wealth.