Talks by Daitri Tiwary (PhD)
, conversed with Daitri Tiwary, Doctoral Scholar, BIMTECH, regarding opportunities of collaborati... more , conversed with Daitri Tiwary, Doctoral Scholar, BIMTECH, regarding opportunities of collaboration with Poland and the downside risks for the world economy amidst the shock of COVID followed by Russia-Ukraine conflict. Daitri: A prelude to the pandemic, macroeconomic policy in advanced economies saw a surge of reverse globalization. Do you think trade protectionism is here to stay? Professor Tomkiewicz: Though there are many opinions around this, globalization is irreversible. The COVID-19 pandemic is an event that has further punctuated trade flows. If we go back in time, until and unless there are strict political actions, like in North Korea for example, the market forces will continue to prevail as these are very strong. Even if countries choose to remain closed because of political decisions, like in the case of China, shutting off trade may lead to the interruption in the entire export dynamics of a nation. So sometimes the economic puzzle has to overcome the political dilemma for the right results. As you said, we saw that globalisation slowed down. But we need to understand some fundamental drivers of the process of globalisation. One such driver is the difference between the labour cost in Asia and Europe which led to a significant shift in production from the West to Asia. It is not going to be as dynamic as it was in the past because Asia is not cheap anymore. So when the middle class in Asia, especially in China and to some extent in India, is rising, more and more economies of developing Asia will increase their domestic focus. The cost differential of producing in China used to be 8%-9% 10 years ago but now it is just 1%. Demand for Asian production is changing, so the test for the West is not just being as cheap as you could be, but it is to address long-term market forces like rising labour costs and rising middle-class consumption. Disconnections in economies are further related to political decisions and the focus has shifted from offshoring to reshoring. Daitri: With a rise in inflation, The European Central Bank has raised the interest rate. Is it counterintuitive to EU's market volatility? What will be the magnitude of the impact of a higher EURIBOR on emerging markets, especially developing Asia? Professor Tomkiewicz: The European Central Bank has a massive problem because we've got very big differences between the countries within the Eurozone. We have got 4% inflation in France but at the same time almost 19% in Estonia. There's a lot of heterogeneity in terms of the performance in the BIMTECH Business Perspectives 48-50
Books by Daitri Tiwary (PhD)
American investor Jim Rogers is often infamously quoted as having said, "Bottoms in the investmen... more American investor Jim Rogers is often infamously quoted as having said, "Bottoms in the investment world don't end with four-year lows; they end with 10-or 15-year lows." (Vonnegut, 2002). So, have we yet hit the low in the post-COVID world? Or is the worst yet to come? While the stock markets around the world witnessed bloodbath in the month of March 2020 with sustained accumulation of the news of spread of novel coronavirus, the
Papers by Daitri Tiwary (PhD)
Journal of Risk and Financial Management
Determinants and levels of working capital financing (WCF) in the manufacturing sector have been ... more Determinants and levels of working capital financing (WCF) in the manufacturing sector have been empirically proven to impact firm profitability across emerging as well as developed nations. With time, firms adjust toward financing their working capital requirement (WCR), although the speed of adjustment, financing constraints, and bargaining power are subject to variations. In this study, we estimate the effect of bank credit and firm foreign currency borrowing on working capital financing with three distinct models for manufacturing firms in India. We examine the relationship between short-term foreign currency borrowings and WCF. Further, we investigate if the internal capital market affects WCF in the form of business group affiliation; lastly, we assess the impact of bank dependency and financial distress on WCF. We conclude that the debt–equity ratio becomes relevant, whereas firm characteristics such as age, size, and asset tangibility become irrelevant. Our original contribu...
Journal of Emerging Market Finance, Mar 6, 2022
The study investigates the role of financial stress in triggering exchange rate volatility in dev... more The study investigates the role of financial stress in triggering exchange rate volatility in developing Asia, where instability in financial markets contributes to the extent of exogenous shocks. We investigate volatility clustering in nominal exchange rate (NER) of dollar-denominated domestic currencies of developing Asia. Using country-level monthly time series data from 2006 to 2019 of NER and financial stress for seven representative economies of developing Asia, namely, Philippines, Indonesia, Malaysia, India, Republic of Korea, Singapore, and Thailand, we construct conditional volatility of returns. With volatility clustering in dollar-denominated exchange rates, we find significant bi-directional and predictive causality in exchange rate volatility and financial stress using vector autoregressive model and test for Granger’s causality. Our findings corroborate with the third-generation model of currency crises in the context of emerging economies. For developing Asian nations, our study implicates the strength of the financial system impacting the level and spread of stress, inducing exchange rate volatility. Our empirical model propounds that though stress is driven by multiple factors, management of exchange rate volatility in emerging economies will need to address problems not only in the foreign exchange market, but also in other financial sectors. JEL Codes: G01, F31, C58
IOP conference series, May 1, 2018
Journal of Information and Optimization Sciences, Aug 18, 2022
Journal of Information and Optimization Sciences
Journal of Emerging Market Finance, 2022
The study investigates the role of financial stress in triggering exchange rate volatility in dev... more The study investigates the role of financial stress in triggering exchange rate volatility in developing Asia, where instability in financial markets contributes to the extent of exogenous shocks. We investigate volatility clustering in nominal exchange rate (NER) of dollar-denominated domestic currencies of developing Asia. Using country-level monthly time series data from 2006 to 2019 of NER and financial stress for seven representative economies of developing Asia, namely, Philippines, Indonesia, Malaysia, India, Republic of Korea, Singapore, and Thailand, we construct conditional volatility of returns. With volatility clustering in dollar-denominated exchange rates, we find significant bi-directional and predictive causality in exchange rate volatility and financial stress using vector autoregressive model and test for Granger’s causality. Our findings corroborate with the third-generation model of currency crises in the context of emerging economies. For developing Asian nation...
IOP Conference Series: Earth and Environmental Science, 2018
Asian Journal of Management Cases, 2021
India’s non-banking financial institutions (NBFIs), broadly constituting the less-regulated shado... more India’s non-banking financial institutions (NBFIs), broadly constituting the less-regulated shadow banking sector, have been plagued with scams, triggering a domino effect in the Indian money marke...
The concept of money continues to be the axle of theorizing in micro and macroeconomics. While tr... more The concept of money continues to be the axle of theorizing in micro and macroeconomics. While transitioning from the homo economicus of orthodox theories to the materialistic man in the era of neoliberalism, money is the marker, if not an absolute measure, for income, wealth, growth, and development
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Talks by Daitri Tiwary (PhD)
Books by Daitri Tiwary (PhD)
Papers by Daitri Tiwary (PhD)