RESEARCH GROUPS
Contemporary Economics and Business: International Business, Trade and Investment
Convenors: Professor Rajneesh Narula (University of Reading), Professor Kunal Sen (University of Manchester), Mr. Arif Zaman (Henley Business School; Commonwealth Business Council & SAARC Chamber of Commerce & Industry), Mr. Mohammad Razzaque (Commonwealth Secretariat; on leave: University of Dhaka)
Despite ongoing challenges of security and poverty, South Asia's business environment and potential will be determined by the combination of three factors at least in the medium to long term. Firstly a growing regionalism driven by a rapprochement in the India-Pakistan relationship since January 2004, reflected not just in increased bilateral and regional trade relationships across South Asia (signified in part by SAFTA - the South Asia Free Trade Agreement) but an improving recognition of the necessity of regional interdependence as the effects of the fuel, finance and food crisis are fully felt. Secondly the demographic dividend in South Asia means that one fifth of the population is aged between 15 and 24 (the largest number of young people ever to transition into adulthood anywhere) and by 2030 South Asia will have the world's largest economically active population. Thirdly South Asia is home to the largest concentration of a growing middle class in any three bordering countries (estimated at around 350 million) and by 2015 to five of the world's ten largest cities.
This group brings together researchers examining existing and emerging issues of international business, trade and investment in South Asia. Such research includes the mutual interaction of the global business environment with the structures, strategies and processes of business in South Asia; the role of international business in South Asia; the impact of changes in South Asia's institutions on international business; the cross-border differential impact of cultural, social, economic, technological and other institutional forces on strategies and management practices; the role of (new) media in social, political and economic change; and management innovation, defined as the creation of new processes, practices and structures inside firms in South Asia. It will also address research on and in South Asia on corporate reputation (as consumer markets grow and corporate brands emerge), corporate governance (as capital markets develop and investor interest increases) and sustainable development (as poverty persists and environmental challenges intensify).
The group will also consider the future shape of South Asian trade regimes and emerging areas of investment. SAFTA is not the only regional trade deal in South Asia; there are such other arrangements as India-Sri Lanka, India-Nepal and India-Bhutan Free Trade Agreements. Apart from these, under the Bay of Bengal Initiative of Multi-sectoral Technical and Economic Cooperation (BIMSTEC), Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand have formed a regional integration scheme. In parallel to bilateral and regional initiatives, South Asian countries have continued their efforts toward unilateral liberalisation. All this has made the trade landscape in South Asia dynamic with important implications for individual countries arising from different arrangements. The potential gains arising from enhanced cooperation including services trade, investment, transshipment and trade facilitation all provide fertile areas for research. The launch of the Dow Jones SAFE 100 Index in March 2009 comprising prominent companies listed on major South Asian stock exchanges underscores the potential of research relating to the development of the financial markets.
Collaboration and exchange is actively sought with researchers, policy-makers and practitioners with the rationale of the group being to strengthen understanding and relationships between and across these communities. This includes groups such as the South Asia Network of Economic Research Institutes (SANEI); the South Asian Network on Economic Modelling (SANEM - a network of economists, trade policy analysts and policymakers in the region with a view to integrating trade policy research with policymaking and disseminating empirical research findings widely); the South Asian Federation of Exchanges (SAFE); the SAARC Energy Centre (SEC); the Association of Management Development Institutions in South Asia (AMDISA); and the US-based South Asian Studies Association (SASA). The group will also raise awareness of and encourage exchange with researchers of contemporary economics and business of South Asia listed in the Institute of Commonwealth Studies' Register of Commonwealth research.