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As multinational fashion giants embrace sustainable practices, Bangladesh's garment and leather industries are at a pivotal crossroads. Can global consumer pressure drive local suppliers to clean up their act and protect the environment while fueling economic growth? Our research dives into this transformative journey towards greener production.

Tags: Multinational Trade, Sustainable Fashion, Environmental Efficiency, Bangladesh Garment Industry, Bangladesh Leather Industry, Water Quality, Dissolved Oxygen (DO), Biochemical Oxygen Demand (BOD), Green Production, Economic Growth, River Ecosystems, Environmental Impact

Does Trade with Multinationals induce Greener Production? Evidence from the Bangladesh Fashion Industry

Overview

The research investigates whether responsible sourcing by multinational companies induces environmentally sustainable practices in developing countries, focusing on the ready-made garment (RMG) industry in Bangladesh. By analyzing data from 2014 to 2021, the study examines the impact of exporting to global fashion brands on local water quality. The findings indicate that trade with brand multinationals can improve environmental outcomes, highlighting the role of private enforcement of environmental standards by foreign buyers in developing countries.

Objective

This study aims to examine the impact of responsible sourcing initiatives by multinational fashion companies on the environmental efficiency of local Bangladeshi firms. The objective is to explore how foreign buyers can promote private enforcement of effluent standards in local firms, thereby aiding government environmental policies and fostering green economic growth.

Phases of the Project

Administrative Customer Data

Diving deep into the heart of Bangladesh's export dynamics, our study leverages ASYCUDA++ data from 2014 to 2021 to reveal how multinational fashion giants influence local environmental practices. By meticulously cleaning and analyzing transaction data, we uncover the transformative power of responsible sourcing in driving greener production methods.

Water Quality Data

  • Department of Environment (DoE) Water Quality Data
  • Bangladesh Water Development Board (BWDB) Water Quality Data
  • River and Delta Research Centre (RDRC) Water Quality Data

Exploring the intersection of fashion and environmental impact, our study delves into the surface water quality of Bangladesh, using crucial data from 127 monitoring stations. By focusing on Dissolved Oxygen (DO) and Biochemical Oxygen Demand (BOD), we aim to illuminate how local industry practices affect river ecosystems.

Engagement

  • Kazi Iqbal, Moogdho Mahzab, Kazuki Motohashi, and Haruka Takayama published the study Does trade with multinationals induce greener production? Evidence from the Bangladesh fashion industry.
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OVERVIEW

TOPICS
Multinational Trade, Sustainable Fashion, Environmental Efficiency, Bangladesh Garment Industry, Bangladesh Leather Industry, Water Quality, Dissolved Oxygen (DO), Biochemical Oxygen Demand (BOD), Green Production, Economic Growth, River Ecosystems, Environmental Impact

LOCATION
Bangladesh

TIMELINE
June 2022 – March 2026

SAMPLE SIZE
14000 RMG factory data entry and manual match and 60 reputed RMG factory survey and 60 Factory Survey

PARTNER
Stanford University, University at Albany, State University of New York, Hitotsubashi Institute for Advanced Study (HIAS), Hitotsubashi University, Bangladesh Institute of Development Studies, ARCED Foundation

PERSONNEL

ARM Mehrab Ali, Sadia Sumaia Chowdhury, Md. Zahirul Islam, Samiha Islam, Abu Abdullah Jubair

Principal Investigator:
Dr. Kazi Iqbal, Dr. Moogdho Mim Mahzab, Dr. Kazuki Motohashi, Dr. Haruka Takayama

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Aureolin Research, Consultancy & Expertise Development Foundation
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