Projects and consultancy

Home
Resume
Papers (by status)
Papers (by area)
Papers on India
Teaching & Training
Projects & Consultancy
Awards, Visiting Positions, Keynote Speeches etc.
Media presence

Forces for Change (in co-operation with BITC)

In collaboration with some of my colleagues at Sheffield University Management School and in co-operation with BITC, I worked on the Forces for Change project. We identified six major forces that would shape the business landscape in the future. These are demographic change, climate change, increased competition for resources, geopolitical changes, changes in social values, and technological changes. Our thesis is that as these changes take place they will shape interactions between governments, civil societies and the international community. The political economy of these interactions will, in turn, shape the nature of formal institutions, and rules and regulations that govern business activity. Businesses will have to strategise to deal with these changes. At the one end of the strategy spectrum, they can be tactical and reactive, and adjust to these changes to the best of their abilities. At the other end, they can proactively engage with the society, the political establishment, the technology creators and others to influence the major forces and, consequently, the changes in institutions, rules and regulations.

BITC home page | Forces for Change home page

UKIERI Trilateral Research Grant (UKIERI funded)

This project aims to examine two related issues that can facilitate (or hinder) private sector development – financial development and corporate governance – in India, a BRICS country.
Specifically, it shall address four questions: (a) have financial reforms reduced informational inefficiency, volatility and transactions cost in India’s capital market? (b) how have these reforms affected allocational efficiency of credit and risk-taking by commercial banks? (c) how have financial and real sector reforms affected the quality of corporate governance? and (d) how have changes in corporate governance quality affected firm behaviour and firm performance? The Indian results will be compared to those for Turkey that implemented quite a different sequence of financial (and real) sector reforms. The research team includes researchers from the Indian Institute of Management at Calcutta, Madras School of Economics, and Southern Illinois University at Edwardsville.
UKIERI home page | Chakrabarty home page | Kutan home page | Selakra home page  

Enterprise Research Centre (ESRC funded; along with BIS, BBA and TSB) ESRC grant page

I was associated with the work package that focuses on financing issues related to enterprise growth, and worked with Mike Wright of Imperial College and Stuart Fraser of Warwick Business School. My activities as part of the ERC were as follows: [a] Stuart Fraser, Mike Wright and I wrote a white paper summarising the available evidence about credit and non-credit (e.g., venture capital, business angels) modes of financing firms, identifying issues that require further evidence based research. [b] I used the KfW-ZEW data on German start-up firms to write a paper on the financing patterns of German start-ups during the early stage of the recent financial crisis. [c] Stuart Fraser, Mike Wright and I provided input to BIS about the functioning of business banks around the world. I specifically provided input about Germany's KfW and Canada's BDC. Later, I provided input into the newly formulated British Business Bank's internal research paper on mezzanine finance. 
   
Sample output
 
What do we know about entrepreneurial finance and its relationship with growth (with S. Fraser and M. Wright). International Small Business Journal, 33(1): 70-88.
DOI 
 
Choice of funding source and investment gap in start-up firms during the financial crisis: Evidence from a cross-section of German firms  
Download research paper   
 

High growth firms -- characteristics and determinants (NESTA funded) NESTA project page  

The project addresses a number of aspects of high growth firms in the UK, such as productivity and internationalisation. The Aston Business School team includes Mark Hart, Jun Du, Yama Temouri, Yundan Gong, Michael Anyadike-Danes and Karen Bonner. I am associated with a work package that examines financing constraints among British firms, across a wide range of 2-digit industries and geographical regions. We examine it using both stylised econometric methods, as well as a stochastic frontier based approach discussed in my 2012 Journal of Banking & Finance paper (DOI).
NESTA home page | Download research paper  

Relationship between high growth firms and internationalisation (UKTI funded)

This project will examine the relationship between internationalisation of firms and their growth, with emphasis on high growth firms. Broadly speaking, these are firms that have an annualised growth rate greater than 20 percent over a three year period, when growth is measured in terms of employment or turnover. Aside from me, the project team includes, among others, Mark Hart, Yundan Gong and Yama Temouri of Aston Business School.
UKTI home page 

Productivity and its drivers in the UK and comparable developed countries (ESRC funded) ESRC grant page #1 ESRC grant page #2   

A significant proportion of cross-country variation in GDP growth is explained by the variation in productivity growth rate. Hence, it is important to develop an understanding about policies that raise the trend rate of productivity growth for an economy. That in turn, requires an understanding of the cyclicality of productivity itself and that of its determinants. Since economic downturns reduce the opportunity cost of productive resources, they provide opportunities to implement changes that raise the aforementioned trend rate of productivity growth.

The first part of the project examined the academic literature on the cyclicality of productivity and its determinants. The second part of the project examined the available evidence about the British government's policies regarding these determinants, especially in the context of the most recent recession, and drew inferences about the likely trend in productivity growth (as well as structural challenges) during the recovery. The project was undertaken in cooperation with researchers and policymakers at the UK Department of Business Innovation and Skills.
BIS home page | Download research paper 

Impact of state-ownership of banks on privately-owned firms’ access to credit (British Academy funded)

In this project, my co-authors and I examine the hypothesis that significant presence of state-owned banks eases financial constraints of a wide range of firms. We do this in two parts, using firm-level panel data from India, where public sector banks continue to overwhelmingly dominate the credit market, despite having steadily lost market share to private sector banks since the mid 1990s. In the first of two papers, we examine the determinants of financial constraints of firms. We employ a stochastic frontier methodology that allows us to identify the frontier, and measure financial constraint as distance from that frontier. In the second paper, we examine how firms' access to credit is impacted by monetary policy initiatives of the central bank.

Sample output:

Sumon Bhaumik, Pranab Das and Subal Kumbhakar (2012) A Stochastic Frontier Approach to Modelling Financial Constraints in Firms: An Application to India. Journal of Banking and Finance, 36(5): 1311-1319.

Download working paper 
 

Sumon Bhaumik, Subal Kumbhakar and Kai Sun (forthcoming)  A Semiparametric Approach to Estimating Financing Constraints in Firms. European Journal of Finance, 21(12): 992-1004, 2015.

Download early version   

Enterprise risk management in India

This project extends the research of the Conference Board on Enterprise Risk Management (ERM) in the USA to India. It uses case studies of four Indian companies -- Tata Chemicals, Tata Motors, Dr. Reddy's and ICICI Bank -- to draw conclusions about the nature of ERM in the Indian corporate sector. The final report, co-authored with Ellen Hexter and Matteo Tonello, has been released in April 2008.

Enterprise performance in Lagos

The World Bank sought expert opinions on the factors that hinder growth and financial viability of firms in Lagos, the largest non-oil industrial region of Nigeria. The basis for the opinions was firm-level data collected by the Bank from the population of large firms, and random samples of small and medium enterprises, and informal sector firms. Saul Estrin and I acted as consultants to the Bank. The final report was submitted to the Bank in the summer of 2006.

Market development in emerging markets - II (DfID funded)

The Department for International Development (DfID) funded project aimed at exploring the nature of impact of institutions on market development in emerging markets. The project was managed by Saul Estrin, and the Centre for New and Emerging Markets at London Business School served as the secretariat for the project.

The key question addressed in the course of the project was how local institutions in emerging markets affect entry of firms into product markets. It also explored the impact of entry on firm-level total factor productivity. The project builds on the seminal work of Hernando de Soto, as also on the research of Mark Roberts, James Tybout and Simeon Djankov, among others.

The empirical work was undertaken using firm-level secondary data from the BRICS countries, namely, Brazil, Russia, India, China and South Africa, and Senegal. I was involved in the Indian end of the project, and worked closely with the Indian team led by Shubhashis Gangopadhyay of India Development Foundation. The project came to an end in 2005.

Sample output
:

Sumon Bhaumik, Shubhashis Gangopadhyay and Shagun Krishnan (2009) Entry, Reforms and Productivity: Some Evidence from the Indian Manufacturing Sector. Review of Development Economics, 13(4): 658-672.

Sumon Bhaumik, Shubhashis Gangopadhyay and Shagun Krishnan (2008) Policy, Economic Federalism, and Product Market Entry: The Indian Experience. European Journal of Development Research, 20(1): 1-30.

Sumon Bhaumik, Shubhashis Gangopadhyay and Shagun Krishnan (2007) Entry, Reforms Complementarity and Performance: A Tale of Two Indian Manufacturing Sectors, Economic Systems, 31(4): 375-390.
Presentation on India Download

Market development in emerging markets - I (DfID funded)

The Department for International Development (DfID) funded project aimed at exploring some aspects of the functioning of multinational enterprises in emerging markets. The project was managed by Klaus E. Meyer and Saul Estrin, and the Centre for New and Emerging Markets at London Business School served as the secretariat for the project.

The key question addressed in the course of the project was how local institutions in emerging markets interact with resource requirements of the multinational enterprises in determining the choice of mode of entry of these enterprises into the emerging markets. The importance of this choice arises from the correlation between the entry mode and factors like technology transfer that influence the spillover effects of foreign direct investment.

Firm-level data were collected from multinational enterprises operating in Egypt, India, South Africa and Vietnam. I was involved in the management of the project, and worked closely with K.E. Meyer and S. Estrin, on the one hand, and with the Indian team, led by Subir Gokarn and Laveesh Bhandari, then at the National Council of Applied Economic Research in New Delhi, on the other. The project came to an end in 2003.

Sample output
:

Klaus E. Meyer, Saul Estrin, Sumon Bhaumik and Mike Peng (2009) Institutions, Resources, and Entry Strategies in Emerging Economies. Strategic Management Journal, 30(1): 61-80.

Sumon Bhaumik, Saul Estrin and Klaus E. Meyer (2007) Determinants of Employment Growth at MNEs: Evidence from Egypt, India, South Africa and Vietnam. Comparative Economic Studies, 49(1): 61-80.

Sumon Bhaumik and Stephen Gelb (2005) Determinants of MNCs' Mode of Entry into an Emerging Market: Evidence from Egypt and South Africa. Emerging Market Finance and Trade, 41(2):5-24.
Presentation on India Download | BOOK

Country report on Bulgaria (Global Development Network funded)

The Global Development Network (GDN) sponsored by the World Bank solicited proposals for country reports on transition economies of Central and Eastern Europe and developing countries around the world. My proposal for Bulgaria, developed jointly with Ivona Jackimova and Alexander Shivarov of Varna University of Economics, received a nod. The final report was submitted to GDN in 2001.

Sample output
:

Sumon Bhaumik (2001) Bulgaria: Legacy, Transition and the Soft Underbelly of Macroeconomic Stability. Money & Finance, July-September.

Report on tax administration in India (UNDP funded)

The United Nations Development Programme (UNDP) had sponsored a programme to evaluate tax administration in India. The project was managed by the National Institute for Public Finance and Policy, New Delhi. I co-authored the section on property tax administration in India, along with Om Prakash Mathur. The final report was submitted to the UNDP and the Government of India in 1997.

Sample output
:

Sumon Bhaumik (1998) Property Tax: A Survey of the Problems. Asia-Pacific Tax Bulletin, vol. 4, no. 5.