Abstract

Sovereign wealth funds (SWFs) are not new in the global economy. They are funds that are set aside by wealthy nations for the purposes of cross border investments. These funds are primarily generated from traditional sources like the foreign exchange earnings on cash crops, and the tax revenue that accrued from managing the sales and the operation process of these commodities as well as other non-traditional sources such as pension funds and so on. This paper is set out to show the various types of SWF and analyses their purposes and desirability, the limitations and disadvantages of SWF while suggesting some guidelines and rules of engagements in the modus operandi. Indeed, this paper will benefit researchers and scholars of economics, international studies, government policy makers, and also, those who are involved in the management of sovereign wealth funds in various countries around the world.

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