This study investigates the effect of remittances on household income and poverty in Afghanistan by using a regression model and microeconomic analysis at the household level. The primary data was collected at the household level in Afghanistan. The data is gathered through a pre-tested semi-structured questionnaire from 600 households in Afghanistan. Socio-economic characteristics, income-generating activities, and poverty situation of Afghan households have been evaluated through qualitative and quantitative empirical analysis. In addition to a comprehensive descriptive statistic, regression analysis is specified that evaluates the effect of remittances on household income in Afghanistan. The findings reveal that education, household size, remittance, age, and employment status have a positive effect on income at the household level. In the second model, the result showed that remittance, household size, and employment status have significant effects on poverty levels in the research area. However, the result also suggested some information that remittances provide a development incentive, recipient economies need to reduce the credit constraints that restrict access to migration for the poor and the ability to send money home once the access bar has been dominated.
Keywords: Afghanistan, Household, Regression, Remittance
