The effect of Sovereign Wealth Fund application on economic growth

The number of sovereign wealth funds that aim to operate in the public interest is increasing, such as minimizing the effects of fluctuations in financial markets in recent years. While it is observed that these increasing asset funds are mostly created from commodities, they attract attention with the national asset funds they have created in countries with no natural resources or export surplus. Resource-rich sovereign wealth funds, in line with the goal of reducing instability by ensuring stabilization against economic crises, the effects of countries on economic growth are a matter of curiosity. In this study, it has been tried to reveal the effects of the sovereign wealth funds of 6 countries (Norway, Singapore, Australia, South Korea, New Zeland, Hong Kong) on the economic growth of countries in 2007-2018 period. Dynamic panel data method (system GMM) was used as the econometric method to analyze this relationship. As a result of the study, it has been determined that there is a positive relationship between the sovereign wealth funds and the economic growth of the countries. Keywords: National Asset Fund, Gross Domestic Product, Transparency, Dynamic Panel Data Method, Investments