Impact of remittances from the Afghan diaspora: a case study on the effects in the Samangan province

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.

Citation

Barlas, A.W., Elo, M. and Chand, M. (2025), "Impact of remittances from the Afghan diaspora: a case study on the effects in the Samangan province", South Asian Journal of Business Studies, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/SAJBS-02-2024-0082