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Theoretical and Applied Economics
No. 5 / 2013 (582)

The evolution of sovereign wealth funds and their influence in the global economy. The case of China

Ioana-Iulica MIHAI
Constantin Brâncoveanu University of Piteşti

Abstract. This paper, through the deductive analysis and the causal explanations, catches the positive and negative character of the Sovereign Wealth Funds development as a relatively new economic tool, but with a strong impact in the global economy, especially in the context of the current financial changes. The benefits brought by them to the global capital market, in terms of increasing liquidity and allotting financial resources, however cannot diminish the fears related to the states holding sovereign funds in the economy of other countries, and in order to give an example we present the case of China.

Keywords: sovereign wealth funds (SWFs); economic tool; capital market; investment; globalisation.

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