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Lights On: How Transparency Increases Compliance in Cambodian Global Value Chains

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  • Raymond Robertson

Abstract

This article evaluates the implementation of a transparency policy in garment factories in Cambodia through the Better Factories Cambodia program. Using a difference-in-difference approach that is often applied to control for endogeneity, the author finds that compliance improved following the implementation of the transparency policy. Compliance increased in a group of 21 critical compliance areas that represent fundamental worker rights relative to relevant comparison groups. Compliance among the least-compliant factories, however, did not increase relative to other factories, possibly reflecting limited access to resources.

Suggested Citation

  • Raymond Robertson, 2020. "Lights On: How Transparency Increases Compliance in Cambodian Global Value Chains," ILR Review, Cornell University, ILR School, vol. 73(4), pages 939-968, August.
    • Handle: RePEc:sae:ilrrev:v:73:y:2020:i:4:p:939-968
    DOI: 10.1177/0019793919893333
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    1. Raymond Robertson & Drusilla Brown & Rajeev Dehejia, 2021. "Working conditions and factory survival: Evidence from better factories Cambodia," Review of Development Economics, Wiley Blackwell, vol. 25(1), pages 228-254, February.
    2. Matthew Amengual & Sarosh Kuruvilla, 2020. "Editorial Essay: Introduction to a Special Issue on Improving Private Regulation of Labor in Global Supply Chains: Theory and Evidence," ILR Review, Cornell University, ILR School, vol. 73(4), pages 809-816, August.
    3. Robertson, Raymond, 2023. "Labor compliance programs in developing countries and trade flows: Evidence from Better Work," Economics Letters, Elsevier, vol. 228(C).
    4. Berkel, Hanna & Estmann, Christian & Rand, John, 2022. "Local governance quality and law compliance: The case of Mozambican firms," World Development, Elsevier, vol. 157(C).
    5. Jonathan Morris & Jean Jenkins & Jimmy Donaghey, 2021. "Uneven Development, Uneven Response: The Relentless Search for Meaningful Regulation of GVCs," British Journal of Industrial Relations, London School of Economics, vol. 59(1), pages 3-24, March.
    6. Ana ANTOLIN & Laura BABBITT & Drusilla BROWN, 2021. "Why is the business case for social compliance in global value chains unpersuasive? Rethinking costs, prices and profits," International Labour Review, International Labour Organization, vol. 160(4), pages 571-590, December.

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