PhD research proposal (Risk of investment of sovereign wealth and

PhD (Risk of coronation of supreme riches and strategies that can be used mitigate against the risks - Research Proposal ExampleReports published by OECD reveal that government-driven mergers and acquisitions reached the peak (almost 20 percent of the total international value) level immediately before the financial crisis struck the Euro zone in 2009. In the subsequent year, this value declined sharply to half. The bulk of this international investment originated in few countries, China, the Middle East and North Africa (MENA) region and few other Asian economies. Recently, SWFs bear gained serious attention from the governments of countries around the world on the issue of risk associated with the holding of such wealth and its investment. In this authorship, the impact of such risk on the economy is studied and the ways to mitigate risks attain been discussed. Background Sovereign wealth funds are funds that are controlled by the government of a country. The government of a nation used this fund to make investments in other economies. Governments make investments in other countries by acquiring the assets located in those countries (Keefe, Fournier and Torys, 2003). The developing nations bewilder also been affected solid by the crisis. However, research shows that due to the fact that these countries are developing, harvest-tide rate of these countries are higher than the growth rate of the developed nations (Manganelli and Engle, 2001 Mehta et al., 2012). A gradual but steady shift in power is macroscopical from the West to the Eastern countries. The West is traditionally the centre of economic and financial power and the developed countries of the united States of America and European countries, until now enjoy the maximum economic power and therefore hold the highest semipolitical position in the global economy. The ongoing shift in traditional position and power from the westward developed countries to the emerging economies in the east, s uch as China, is associated with higher levels of investment of SWF (Waki, 2010 Saunders and Cornett, 2011). These investments are mostly do in the emerging market economies. Different levels of risks are associated with the SWFs depending on the pattern of investment made with these funds. Economists and policymakers have made different recommendations and suggested divert ways to mitigate such risks (Seagal, 2013). After the Euro zone crisis took place in late 2009, the issue of risks associated with sovereign wealth has been receiving greater importance (Jost, 2009 Saunders, 2013). Through further research it has been set that the emerging economies are at lower levels of growth but showing higher growth effectiveness than the developed countries (Smith, 2003). Hence investment of SWF is migrating fast towards the emerging economies. Research objective The objective of this research paper is to analyse the risk of investment of sovereign wealth and strategies that can be used mitigate these risks. The tec aims to check whether risks of investing sovereign wealth adversely affect the economic variables in a country,