Mohammad Ehsan Sadiq

Abstract

This study aims to determine the contribution of hand-woven carpets to income and productivity in Andkhoy and Aqcha districts in northern region of Afghanistan. The primary data were collected from 200 carpet weaving households in the study area. The Cobb-Douglas production function was applied to estimate households’ monthly carpet production. In addition, the income contribution of carpet weaving was analyzed by conducting multiple linear regressions. The findings show that both the working hours of the laborers and the number of handlooms used in carpet weaving are positively correlated with carpet output. The coefficient of handloom (K) is larger than the working hour (L). The sum of the estimated coefficients is 1.17 which reveals increasing returns to scale. Households generate income from a variety of sources such as carpet weaving, farming and livestock, family businesses, salary and wages and remittances. Earnings from the weaving of carpets comprises only 37% of the households’ total income. The proportion of women is higher than men in the industry and children comprise 24% of the labor force. Low and decreasing demand is the major challenge that carpet weavers face in the sector.

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