The Impact of Accord & Alliance Compliance Measures on RMG Firm Performance in Bangladesh
Bibliographic Data
| ID | 21543250 |
|---|---|
| Authors | Monzur Hossain (0000-0002-5960-8761, General Economics Division, Bangladesh Planning Commission Dhaka Bangladesh, corresponding author), Kazi Iqbal (0000-0001-8161-4079, Bangladesh Institute of Development Studies Dhaka Bangladesh), Tahreen Tahrima Chowdhury (0000-0002-3218-6079, Bangladesh Institute of Development Studies Dhaka Bangladesh) |
| Year | 2025 |
| Volume | 48 |
| Issue | 9 |
| Pages | 2155-2170 |
| Publication date | 2025-09-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | World Economy (JOURNAL) |
| Journal identifiers | ISSN: 0378-5920 • E-ISSN: 1467-9701 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/twec.70004 |
| OpenAlex | W4411758671 |
| Language | EN |
| References cited | 9 |
This paper examines the impact of a buyer‐driven compliance initiative on ready‐made garment (RMG) firms. Following the devastating Rana Plaza collapse in 2013, U.S. and European garment buyers launched two workplace safety compliance initiatives, the Accord and the Alliance (A&A), aimed at improving workplace safety and labour conditions in the RMG sector, a major source of export earnings and female employment in Bangladesh. Approximately 2000 RMG firms, which account for nearly 60% of the total, entered into a five‐year agreement with A&A from 2014 to 2018 to enhance compliance standards [Correction added on 7 July 2025, after first online publication: The percentage of RMG firms in this sentence was incorrectly stated as 660%. This has been corrected to 60% in this version.]. Using primary survey data from 322 firms—179 treatment and 143 non‐treatment—we apply the difference‐in‐differences method to investigate the causal impact of compliance measures on various firm outcomes. Our results indicate that the compliance impact is positive and significant only for labour productivity, but not for profitability or market access. Improved workplace safety protocols enhance job satisfaction, which in turn boosts labour productivity. However, the positive effect of workplace safety on profitability or market access may be realised in the long run, alongside increased labour productivity
Alliance · Business · Geography · International Business and FDI · Psychology · Social Psychology · Supply Chain Resilience and Risk Management · Taxation and Compliance Studies
The effects of the Rana Plaza collapse on the sourcing choices of French importers
Determinants of the Bangladesh garment exports in the post-MFA environment
Production Networks, Geography, and Firm Performance
Paradigm Shift or Business as Usual? Workers' Views on Multi-stakeholder Initiatives in Bangladesh
| Highly cited | No |
|---|