022 - Farahmand, E.

Eshaq Farahmand:

Impact of ODA on Productivity of Micro, Small and Medium Enterprise - Case Study from homebased Carpet Weavers in Bamyan Province



This study tries to empirically identify the contribution of the Official Development Assistance (ODA) on carpet weavers’ income in Bamyan Center of Bamyan province, Afghanistan. The data for the current study was collected from 250 Home-Based Carpet Weavers (HB-CWs) in the study area. The productivity method was used to assess the impact of ODA on carpet weavers’ household’s (HH’s) income, and the neoclassical production function approach was applied to evaluate the annual carpet production. The results show that in general credit and human capital assistances have contributed positively on carpet production process, while a separated-group evaluation with distinction of ODA-receiv-ers and non-ODA-receivers show that ODA-receiver generates less annual output compared to the control group. Furthermore, the study assumes a situation that ODA were not present for the ODA-receivers group (counterfactual world). Under this assumption, the estimated annual carpet production was found to be higher than factual situation. Nevertheless, the assessed annual carpet production under the counterfactual setup is still lower in comparison to the non-ODA-receivers.

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