Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/217336 
Authors: 
Year of Publication: 
2019
Citation: 
[Journal:] Central Bank Review (CBR) [ISSN:] 1303-0701 [Volume:] 19 [Issue:] 4 [Publisher:] Elsevier [Place:] Amsterdam [Year:] 2019 [Pages:] 129-139
Publisher: 
Elsevier, Amsterdam
Abstract: 
Noticing the visible hand of state capitalism in global production and value chain system, this study examines the outward foreign direct investment strategy of sovereign wealth funds (SWFs). Leveraging theoretical insights from the conventional political economy and international business literature, the study first conceptualizes a yield institutions-based view—marketization to sustainable competitive advantage—to gain a better understanding of the main purposes and economic and institutional determinants of SWFs. Efforts have been made to deepen the institutions-based perspective of global strategy and introduce it into, establish its relevance to SWFs research. Second, the study presents SWFs' outward FDI patterns and acquisition deals in times of global financial market turbulence. Findings suggest that SWFs’ outward FDI choices are primarily determined by institutional transitions, market development and government legitimacy in the home country, thus to invest globally, earn higher economic returns, and secure resources. These choices are firmly motivated toward advanced financial markets, and real estate and infrastructure sectors. Third and last, the study discusses several important implications for state capitalism, policymakers, and sustainable development.
Subjects: 
Sovereign wealth funds
State capitalism
Outward foreign direct investment
Cross-border mergers and acquisitions
Global financial crisis
Institutions-based view
JEL: 
F21
F23
G34
M16
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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