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Vol. 3 No. 2 (2026): April

Copyright (c) 2026 Iftikharullah Fakhar, Mohammad Talha Siddiqui, Abdullah Faizi

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Effects of Remittances on Household Welfare: An Econometrics Analysis from Kunar Province, Afghanistan

https://doi.org/10.62810/jssh.v3i2.243
Iftikharullah Fakhar
Nangarhar University, Department of National Economics, Economics Faculty, Jalalabad, Afghanistan
Mohammad Talha Siddiqui
University of Lucknow, Institute of Management Sciences, Lucknow, India
Abdullah Faizi
Central University of Punjab, Department of Economic Studies, Punjab, India

Corresponding Author(s) : Iftikharullah Fakhar

iftikharullahf@gmail.com

Journal of Social Sciences and Humanities, Vol. 3 No. 2 (2026): April

Abstract

This study evaluates the effect of remittances on household welfare in Kunar province using primary cross-sectional data from 336 households receiving remittances. A composite index, including normalized income, healthcare access, education access, and standard of living, is developed to compute household welfare. The study employed Ordinary Least Squares (OLS) and Logistic Regression (Logit) models to assess the impact of remittances on aggregate welfare and its constituent elements. The Ordinary Least Squares results indicate that household welfare is significantly and positively affected by remittances, access to healthcare, and employment status. The Logit model shows that remittances significantly affect access to healthcare and the standard of living, but not access to education. In addition, remittances were found to be the key determinants of household income, underscoring the vital role of livelihood sustainability amid limited employment opportunities. The study contributes to the limited empirical literature in this context by presenting the econometric analysis and developing a composite index of household welfare. The findings reveal the vital role of remittances as the most important and stabilizing source of household income in an environment characterized by low levels of employment opportunities, weak economic conditions, and long-term social and political instability. The study concludes that remittances remain an important socio-economic survival tool for Kunar province and recommends policies to best utilize remittances to ensure more sustainable welfare improvements.

Keywords

Education Access Healthcare Income OLS Model Remittances
Fakhar, I., Siddiqui, M. T., & Faizi, A. (2026). Effects of Remittances on Household Welfare: An Econometrics Analysis from Kunar Province, Afghanistan. Journal of Social Sciences and Humanities, 3(2), 451–467. https://doi.org/10.62810/jssh.v3i2.243
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Author biographies is not available.
Received 2025-12-16
Accepted 2026-04-28
Published 2026-04-30
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