Does trade with multinationals induce greener production? Evidence from the Bangladesh fashion industry
This brief explores how responsible sourcing by multinational fashion brands improves water quality in Bangladesh’s apparel industry. Using firm-level and environmental data, the study shows that exporters working with global brands adopt greener practices, highlighting the potential of trade to dri...
| Main Authors: | , , , |
|---|---|
| Format: | Brief |
| Language: | Inglés |
| Published: |
International Growth Centre
2025
|
| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/179024 |
| _version_ | 1855515698714902528 |
|---|---|
| author | Iqbal, Kazi Mahzab, Moogdho Motohashi, Kazuki Takayama, Haruka |
| author_browse | Iqbal, Kazi Mahzab, Moogdho Motohashi, Kazuki Takayama, Haruka |
| author_facet | Iqbal, Kazi Mahzab, Moogdho Motohashi, Kazuki Takayama, Haruka |
| author_sort | Iqbal, Kazi |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | This brief explores how responsible sourcing by multinational fashion brands improves water quality in Bangladesh’s apparel industry. Using firm-level and environmental data, the study shows that exporters working with global brands adopt greener practices, highlighting the potential of trade to drive sustainable production in developing countries.
This study examines whether trade with multinational fashion brands encourages greener production among suppliers in Bangladesh using a novel dataset that combines firm-level transactional data with river water quality indicators.
The study finds that firms exporting to global fashion brands (for example, H&M, Zara, Uniqlo, and Banana Republic) are more likely to adopt environmentally sustainable practices.
An increase in the share of suppliers exporting to multinational brands leads to measurable improvements in river water quality. The improvement in water quality persists for at least four years after firms begin exporting to multinational brands.
The negative impact of higher export activity is mitigated when exporters are primarily supplying to multinational brands with stricter environmental requirements.
Policy recommendations include strengthening environmental regulation enforcement, introducing a pollution monitoring and warning system, harmonising environmental certification requirements, encouraging multinationals to support green production, and exerting global pressure on non-brand buyers to adhere to higher environmental standards. |
| format | Brief |
| id | CGSpace179024 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2025 |
| publishDateRange | 2025 |
| publishDateSort | 2025 |
| publisher | International Growth Centre |
| publisherStr | International Growth Centre |
| record_format | dspace |
| spelling | CGSpace1790242025-12-19T15:55:54Z Does trade with multinationals induce greener production? Evidence from the Bangladesh fashion industry Iqbal, Kazi Mahzab, Moogdho Motohashi, Kazuki Takayama, Haruka pollution water pollution wastewater industrial wastewater textile industry multinational firms This brief explores how responsible sourcing by multinational fashion brands improves water quality in Bangladesh’s apparel industry. Using firm-level and environmental data, the study shows that exporters working with global brands adopt greener practices, highlighting the potential of trade to drive sustainable production in developing countries. This study examines whether trade with multinational fashion brands encourages greener production among suppliers in Bangladesh using a novel dataset that combines firm-level transactional data with river water quality indicators. The study finds that firms exporting to global fashion brands (for example, H&M, Zara, Uniqlo, and Banana Republic) are more likely to adopt environmentally sustainable practices. An increase in the share of suppliers exporting to multinational brands leads to measurable improvements in river water quality. The improvement in water quality persists for at least four years after firms begin exporting to multinational brands. The negative impact of higher export activity is mitigated when exporters are primarily supplying to multinational brands with stricter environmental requirements. Policy recommendations include strengthening environmental regulation enforcement, introducing a pollution monitoring and warning system, harmonising environmental certification requirements, encouraging multinationals to support green production, and exerting global pressure on non-brand buyers to adhere to higher environmental standards. 2025-06-03 2025-12-18T21:33:32Z 2025-12-18T21:33:32Z Brief https://hdl.handle.net/10568/179024 en https://www.theigc.org/blogs/bangladesh-garment-industry-river-pollution Open Access International Growth Centre Iqbal, Kazi; Mahzab, Moogdho; Motohashi, Kazuki; and Takayama, Haruka. 2025. Does trade with multinationals induce greener production? Evidence from the Bangladesh fashion industry. IGC Policy Brief. International Growth Centre. https://www.theigc.org/publications/does-trade-multinationals-induce-greener-production-evidence-bangladesh-fashion-0 |
| spellingShingle | pollution water pollution wastewater industrial wastewater textile industry multinational firms Iqbal, Kazi Mahzab, Moogdho Motohashi, Kazuki Takayama, Haruka Does trade with multinationals induce greener production? Evidence from the Bangladesh fashion industry |
| title | Does trade with multinationals induce greener production? Evidence from the Bangladesh fashion industry |
| title_full | Does trade with multinationals induce greener production? Evidence from the Bangladesh fashion industry |
| title_fullStr | Does trade with multinationals induce greener production? Evidence from the Bangladesh fashion industry |
| title_full_unstemmed | Does trade with multinationals induce greener production? Evidence from the Bangladesh fashion industry |
| title_short | Does trade with multinationals induce greener production? Evidence from the Bangladesh fashion industry |
| title_sort | does trade with multinationals induce greener production evidence from the bangladesh fashion industry |
| topic | pollution water pollution wastewater industrial wastewater textile industry multinational firms |
| url | https://hdl.handle.net/10568/179024 |
| work_keys_str_mv | AT iqbalkazi doestradewithmultinationalsinducegreenerproductionevidencefromthebangladeshfashionindustry AT mahzabmoogdho doestradewithmultinationalsinducegreenerproductionevidencefromthebangladeshfashionindustry AT motohashikazuki doestradewithmultinationalsinducegreenerproductionevidencefromthebangladeshfashionindustry AT takayamaharuka doestradewithmultinationalsinducegreenerproductionevidencefromthebangladeshfashionindustry |