Ahmad Walid Barlas

Abstract

This research assessed the contribution of external remittances to total household income in the northern provinces of Afghanistan. The primary data were collected with the assistance of questionnaires from 450 households in Balkh, Samangan and Jawzjan provinces. Both income composition function and quantile regression were employed to derive the contribution of remittances to total household income and income per capita. Descriptive findings revealed that 30% of total household income was comprised of international remittances in the study areas. Close to 50% of remittance-receiving households used the hawala system as the money transferring channel. Remittances were positively associated with total household income in Balkh, Samangan, Jawzjan and overall, and it was also statistically significant at 0.01 levels in all cases. Quantile regression confirmed an increasing impact of remittances to income per capita across quantiles for Balkh province respondents, but this contribution fluctuated through quantiles for Samangan and Jawzjan households.

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