Impact of remittances from the Afghan diaspora: a case study on the effects in the Samangan province
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Abstract
Purpose: The study examines the relationship between international remittances and income inequality in Afghanistan by analysing how remittances affect income inequality in the Samangan province. Design/methodology/approach: Primary data were collected by administering a questionnaire to 325 households in the Samangan province using a multi-stage sampling approach. Income distribution was measured using the Gini coefficient. Findings: There were an average of 8 members and 1.5 migrants in each household, with the mean age of respondents being 35. Remittances formed about 25% of the household income and had a slight negative effect on income inequality, with a 1% increase in remittances leading to a 0.04% decrease in inequality. Research limitations/implications: The data were collected in one province. The findings underline the need to develop policies that foster peace and stability through reducing inequality. Practical implications: International remittances can form a significant portion of household income in conflict-affected and post-conflict societies. The effect of remittances on income distribution can help us understand where development efforts need to be channelled and how businesses can best operate in challenging circumstances. Originality/value: This is the only study to our knowledge that looks at the effects of migration and remittances on income inequality in Afghanistan. © 2024, Emerald Publishing Limited.