Measuring The Impact Of The Performance Of Sovereign Wealth Funds On The Economic Sustainability Of Agriculture: Norway, Canada, And Azerbaijan As Case Studies

Abstract

Rentier countries are afraid of the challenges they face while dealing with financial surpluses (such as Dutch disease, external shocks resulting from low prices or global demand for these resources, structural distortion, and poor distribution between generations). To avoid these problems, many countries have resorted to establishing sovereign wealth funds because it has a major role in helping these countries manage the challenges associated with their heavy dependence on natural resources, by diversifying revenue sources, achieving financial stability, enhancing long-term economic sustainability, achieving intergenerational justice, and accumulating and transferring wealth across generations.

The research aims to test the impact of the performance of sovereign wealth funds on the sustainability of the agricultural sector in Norway, Canada and Azerbaijan. It was based on time series data for the period (2008-2020). For the purpose of estimating the model that was built (and using the ARDL methodology) by considering agricultural output as a percentage of GDP as a dependent variable, and each of: the performance of sovereign wealth funds, total domestic investments, spending on research and development, and finally foreign direct investment) as independent variables, and the results proved the validity of the research hypothesis: There is a positive moral relationship between the performance of sovereign wealth funds and the economic sustainability of agriculture.