Does social compliance lead to export upgrading? Evidence from Bangladesh
A 2013 industrial accident in Bangladesh's apparel sector led to many factories implementing safety upgrades for export compliance. This brief presents findings from a study exploring the link between safety compliance and firm upgrading. Preliminary results reveal that while safety compliance hindered quality upgrading, it encouraged the adoption of cost-saving and monitoring technologies.
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Ahsan and Iqbal Policy Brief March 2025.pdf
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- An industrial accident in 2013 spotlighted workplace safety in Bangladesh's apparel sector, leading many local factories to undergo safety upgrades for export compliance.
- This policy brief presents findings from a study examining the link between safety compliance and firm upgrading in Bangladesh.
- Preliminary results show that while safety compliance reduced quality upgrading, it fostered the adoption of cost-saving and monitoring technologies.
- This brief proposes a DIFE-led information campaign to address firms' uncertainty regarding the return on investment in safety compliance.
- Collaboration with buyers, capacity building for DIFE inspectors, and encouraging private safety audit firms are recommended to strengthen monitoring and compliance.
- Business associations like BGMEA and BKMEA should take proactive roles in driving reforms for a safer and more compliant industry.