Ajmal Haidari

Abstract

Women are the vulnerable members of Afghan society. They engage in income earning activities despite facing social-discrimination and reduced access to education. This research attempts to assess the contribution of women to household income through participation in micro-credit in Fayzabad city of Badakhshan province. The sample consists of two groups; with-credit and without-credit women who were interviewed through questionnaires using random sampling. The with-credit group includes women whose business activities rely on loans provided by a micro finance institution, while the without-credit group is comprised of women whose businesses financed by their own investments. The data were analyzed through multiple regressions using SPSS version 25. The analysis reveals that women in the with-credit group contribute more to household income than that without-credit both in terms of percentage and coefficients. As the results show the with-credit women contribution is 12% compared to the without-credit women at 8%. In addition, the coefficient for the respondents income in with-credit group is, β=0.216 while the without-credit group shows β=0.148. Furthermore data show that despite facing higher interest rates; there is enthusiasm among rural women for taking loans from institutions, because of the potential market for their products and due to the lack of alternative financial sources.

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