Indian Institute of Foreign Trade

This paper examines the impact of M&A activities on Indian firms' sustainability performance, considering the triple bottom line approach grounded in Agency Theory and Resource-Based View (RBV). To achieve this objective, the large panel data of 342 NSE-listed M&A firms from the period 2014 to 2023 is considered, with the event window of (-1, +3). The empirical results provide evidence that corporate governance variables and the ESG score of M&A firms are positively correlated; however, some variation exists. Promoter ownership, institutional ownership, and FII positively impact performance post-M&A, with FII showing improved sustainability performance, especially when considering overall ESG. Board size and CEO duality negatively affect ESG post-M&A, while board diversity, especially female representation, has a stronger positive impact on sustainability performance after M&A. However, when each of the three components of sustainability, that is, E (environmental), S (social), and G (governance), is examined, it is found that different ESG parameters are affected differently. The research explores a new subject, which links Mergers and Acquisitions to sustainability, to expand knowledge in these two fields. The research draws its theoretical foundation from Agency Theory and Resource-Based View (RBV) to show that corporate governance systems function as valuable, rare, and inimitable resources, which lead to better sustainable performance for firms. The research applies theoretical frameworks to establish relationships between post-acquisition governance systems and ESG performance, which enables a better understanding of governance integration approaches that lead to sustainable long-term results in Indian emerging markets.

In this paper, we study a generalised two-tier supply chain wherein a firm with multiple facilities seeks to select a subset of suppliers with different prices, qualities, capacities, and carbon emissions. Exogenous demand in the second tier then is satisfied by the selected suppliers in a multi-sourcing framework. The firm in our setting seeks to minimise the integrated cost of sourcing, inventory planning, and emission penalties while adhering to operational limitations as well as regulatory constraints. In our setting, we assume that each supplier produces a stochastic amount of greenhouse gas emissions per unit supplied, leading to environmental cost for the sourcing facilities proportionate to the amount sourced. We develop an iterative heuristic coupled with an accelerated Bender's decomposition to solve the underlying NP-hard MINLP robust formulation. First, we demonstrate the superior performance of our methodology against a benchmark commercial solver in terms of both solution quality and run time. Next, utilising data motivated by a real case study, we derive extensive managerial insights with regards to robustness analysis, price of sustainability, and supplier selection. We conclude our analysis by explaining the implications of various parameter settings in practical decision-making.

Digitalisation has increasingly reshaped trade logistics, yet empirical evidence linking logistics digitalisation to trade outcomes remains limited. This study examines the relationship between logistics digitalisation, proxied by selected operational components of the Logistics Performance Index (LPI), and bilateral trade flows. Using a gravity model estimated via Poisson Pseudo Maximum Likelihood (PPML) on a harmonised panel of 160 countries over the period 2007-2019, the results indicate a statistically significant association between logistics digitalisation and trade flows, conditional on standard gravity controls such as economic size and distance. The findings suggest that improvements in digitally enabled logistics processes contribute to trade efficiency, although the magnitude of these effects varies across country income groups. The study contributes to the logistics and trade literature by clarifying the role of the LPI as a proxy for realised logistics digitalisation and by providing policy-relevant insights for trade facilitation, particularly in developing economies.

This paper empirically analyzes tourist inflows as a determinant of merchandise exports for the Pacific countries by employing a gravity model technique. Other relevant variables that augment the model are trade agreements, language affinity, and visa policies. The paper finds that inbound tourism to Pacific countries significantly increases merchandise exports: 1% increase in tourist inflows is associated with a 0.17% rise in merchandise exports in the region. This relationship is along expected lines, as international tourist arrivals can help reduce trade costs, increasing such exports. If international tourists come from countries that share a common language and have established economic partnerships through FTAs and relaxed visa policies, the increase in tourist arrivals is notably bigger.

This is a commentary on the current fervour about artificial intelligence (AI) and its supposed neo-colonial underpinnings. While many deem it as a harbinger of an intelligent and just future, critics often fear it as a force of neo-colonialism and, hence, inequality in the modern-day world. This is claimed on account of excessive concentration of high-end AI-centric digital infrastructure and know-how in the technologically advanced Global North vis-& agrave;-vis the less developed Global South. As AI is here to stay (and must stay), a robust socio-economic framework in the form of well-functioning physical and social digital and AI infrastructure must be put in place. This could be in the form of regular and seamless internet connectivity across both rural and urban areas with high network bandwidth. This should be supported with a well-trained and digitally smart workforce, who are equipped to understand the nuances of the modern digital economy, as well as a properly functioning data regulatory framework. Such measures would make the future intelligent as well as less susceptible to neo-colonialism.