Dr Asha Sundaram
Dr Asha Sundaram is a Senior Lecturer in the Department of Economics at the University of Auckland Business School. Her research interests are in the fields of International Trade and Development Economics. We asked Asha to tell us a bit about her research and why it’s important.
Tell us a bit about your research:
My research studies the impact of globalisation on people and businesses and highlights the role of institutions and infrastructure in determining these impacts. It leverages economic models and employs estimation techniques on data from around the world.
For example, in work with co-researchers, we demonstrate that better access to banking infrastructure helped Indian small enterprises adapt to foreign competition. Manufacturing businesses in Ethiopia with greater market access stemming from an improved road network experienced larger productivity gains from trade. Stringent labour regulations, poorly enforced, imposed a cost on Indian exporters. US businesses mandated to provide family leave employed fewer women relative to men when faced with greater competition from China.
A related strand of my work focuses on networks and finds that business networks facilitate matching between US buyers and Bangladeshi sellers, while current work asks whether social networks reduce under-utilisation of migrant skills in New Zealand by matching migrants to jobs.
Why is it important?
Underlying some of the recent political polarisation in western countries, as evidenced by contentious US presidential elections since 2016 and the Brexit vote, is a backlash against globalisation from large swathes of the population who feel that they have lost from it. This is even though globalisation has lifted millions out of poverty in recent decades.
My research shows that domestic conditions are crucial in establishing who gains and who loses from international trade, investment and immigration. It underscores policies governments can institute to ensure that gains from globalisation are more evenly spread in society. These include strengthening transport infrastructure and legal institutions, improving access to credit, streamlining labour regulations and supporting business networks.
Given its implications, my research has been published not just in peer-reviewed journals, but in blogs, policy briefs and media reports. It has resonated with international organisations and think-tanks globally.