Global Value Chains Are Seen As Positive, But Their Impact On Labour Could Be Adverse

Your academic journey includes teaching and research positions at various prestigious  institutions. How have these experiences shaped your approach to teaching economics, particularly at XLRI Jamshedpur?

Before joining XLRI, I worked at the Indian Institute of Foreign Trade (IIFT) as a research associate, and at Lady Shri Ram College, Miranda House, and Maitreyi College under Delhi University as a lecturer. I also taught in the distance programme of the London School of Economics (LSE). Teaching quality improves with experience. The more you teach, the better you understand the subject, gaining clarity on the minute details of concepts, and your delivery becomes more mature. The courses I taught at Delhi University colleges clarified many ideas related to political economy. At LSE, I taught a course on international trade and finance, which was very in-depth. I developed my elective, International Business Economics (IBE), at XLRI somewhat based on that course.

Policies often promote global value chains, but there is a lack of literature questioning their implications for the labour market.

Your research interests span macroeconomics, international trade, and labour economics. Could you share some insights into your recent research projects and their implications for the field?

My research interests have evolved over the years and are not necessarily confined to macroeconomics, trade, and labour. I have also worked on energy, consumer behaviour, and firm behaviour. All these are collaborative works. Currently, in collaboration with a PhD student, I am looking into global value chains and their labour market implications. The project is in its nascent stage, and the question excites me. The development of global value chains is generally perceived as a positive change, and policies often promote such activities. However, there seems to be a lack of literature questioning their implications for the labour market. The impact on the labour market could be adverse. This research will indicate whether we should encourage global value chains or not. Another project we are working on explores the behavioural decision making of rural women, adopting a more socio-economic approach.

Tell us about your recent paper on “Welfare implications of information sharing by integrated e-retailers.” If you could elaborate on the key findings of the study and its significance in today’s digital economy?

An integrated e-retailer (like Amazon) competes with third-party sellers (businesses that sell on platforms like Amazon) on the retailer’s platform. Due to its access to consumer data and analytic capabilities, the integrated retailer possesses demand information not available to third-party sellers. When the information is not shared by the retailer, the third-party sellers make imprecise estimates. This paper shows that by withholding information, the retailer benefits at the cost of the third-party sellers only if the actual demand is more than that estimated by the third-party sellers and is less than a threshold. However, consumers’ surplus increases. The gain in consumers’ surplus may be greater than the retailer’s profit gain, resulting in an increase in social welfare. Increases in the commission rate, the number of third-party sellers, and the wholesale price of the product encourage the retailer to share demand information with the third-party sellers. These insights help integrated retailers decide their information sharing strategy and aid regulators in formulating antitrust laws.

As a member of various administrative committees at XLRI, you’ve been actively involved in addressing student grievances and admissions. How do you balance these administrative responsibilities with your academic pursuits?

Administrative responsibilities are part of our job. We have to take on whatever responsibilities the institute assigns us. I have been part of the students’ grievance committee, the admissions committee, and the scholarship and awards committee. We participate in the decision-making processes for each committee and assist the convener with their tasks. If one is a member of a committee, it is not too difficult to balance academic and administrative duties. For the past five years, I have been an active member of CASH, and I served as the convener for three years. The convener’s responsibilities are time demanding, but somehow, I’ve managed that. A bit of organisation of time and work is required.

Could you discuss the courses you teach at XLRI, such as Macroeconomic Theory and Policy, Economics of Human Resources, and International Business Economics? How do you ensure that these courses remain relevant and engaging for MBA students?

Recently, I have focused on Macroeconomic Theory and Policy and International Business Economics. I have not taught Economics of Human Resources in the last few years. Both Macroeconomic Theory and International Business Economics require frequently updating the content and incorporating analyses of recent or current events around the world. My focus in these courses is to deliver theory with clarity and make students think logically. For this, I extensively use a logical flow-chart method. Emphasising theory helps students approach any issue regardless of when and where it happens. International geopolitical developments are interesting to most students, and bringing that aspect into the classroom can keep the sessions engaging.

Additionally, relating the theory to current events, both domestically and internationally, is crucial for keeping the course relevant.

You’ve presented papers at various conferences and contributed to conference proceedings. What role do these presentations play in advancing your research agenda?

Conferences are crucial for researchers, providing international feedback and fostering collaborations, helping us refine our work and learn new techniques

Conferences are important for researchers. They provide feedback from an international audience, which I take seriously and try to incorporate into my work. Sometimes, collaborations also emerge through conferences. I attend workshops that are often part of conferences, helping me learn new research techniques. Your research covers diverse topics, from the impact of diesel pricing deregulation to the analysis of India-EU trade in the pharmaceutical sector.

How do you select and prioritise research topics in your area of expertise?

The paper on diesel prices was instigated by the sharp changes in crude oil prices over the past decade, particularly during the financial crisis and the 2014-15 crash. India also underwent policy changes regarding petrol-diesel prices. I decided to examine the impact of these policy changes on mitigating the effect of crude price fluctuations on the Indian economy. The paper on India-EU pharmaceutical trade came out as a discovery that something counterintuitive was happening in this area. During the European debt crisis of 2010-12, the crisis-ridden countries of Europe were importing medicines from India in phenomenally higher volumes than in times of prosperity. I was intrigued by this and tried to look for a reason. The paper is a result of this curiosity.

If something counterintuitive or unexpected happens, it interests me. If I find an existing argument unconvincing, I delve deeper.

You’ve authored chapters in scholarly books and contributed to research reports. Could you share your experience of translating academic research into actionable insights for policymakers and industry practitioners?

Writing a chapter in a scholarly book is not much different from publishing a research article in a journal, except that the chapter must be consistent with the book’s subject matter. I contributed to the Economic Survey of Jharkhand state some time ago, along with other professors in
the economics area. Such works offer a direct opportunity to make policy suggestions to the government.

As a visiting faculty member at various institutions, including Lady Shri Ram College for Women and Maitreyi College, what differences do you observe in teaching undergraduate students versus MBA students? How do you tailor your teaching approach to accommodate these differences?

I was a visiting faculty member at Maitreyi College just after completing my post-graduation while I was still an MPhil student. At Lady Shri Ram College and Miranda House, I was a full-time faculty member. Teaching undergraduates in these places of excellence was a great experience. Students were less obsessed with getting placed, and many pursued master’s degrees and PhDs, eventually entering academia. The quality of research by students in those colleges made me proud, although the infrastructure and library resources were not as good as in an MBA institute. In an MBA school, the three month term seems very short to me. By term 4, students often forget what they learned in terms 1 or 2 because the terms are so short, they do not have time to internalise the content. However, there are some eager students, which I am happy to have. The placement orientation makes teaching challenging. I have tailored my teaching approach by being more application oriented and allowing students to choose project topics related to their intended careers. Classes are more interactive, with students having much more to say compared to undergraduate colleges. I have gradually adapted to open discussions in the class.

What advice would you give to MBA students interested in pursuing a career in economics, considering the evolving dynamics of the global economy and emerging trends in the field?

Pursuing a career in economics typically means working as an economist or researcher in the research wings of corporations or as a professor in an educational institution. A typical MBA student is not usually geared towards this unless they complete a PhD or FPM from a reputable institution. If they are interested, they should pursue a PhD in economics and gain proficiency in statistics, econometrics, or mathematical modelling. They should also have an interest in political
economic aspects.

Finally, could you share your thoughts on the future direction of economic research and its implications for policy formulation and business strategy in the post-pandemic world?

This is a broad and difficult question as economics branches into many areas, each with its own experts. Almost all research articles suggest some policy formulation or business strategy depending on the topic. I can identify four or five areas where there is or will be more research in the post pandemic world:

• Disruption in the labour marketing the form of work-from-home, though this may be temporary.
• Growth of e-commerce and its implications, a change likely to stay.
• Artificial intelligence and its impact on the labour market, emphasising the need to increase job opportunities rather than allowing job losses due to AI.
• Environment and climate change, and ways to mitigate it, a major area requiring more research and selective implementation.
• Gender equality, which remains crucial — not only between men and women but among all genders.