Development Programs, Household Income and Economic Development: A Study of Eastern Region of Afghanistan

Abstract

This study investigates the correlation between the development programs, household income and economic development in the eastern region of Afghanistan. The data obtained were primary data which was gathered using quantitative research approach with 150 respondents selected using simple random sampling technique. The correlation and regression analyses were used to test the prediction power of the variables of household income and program development to economic development outcomes. The correlation matrix showed that the correlation between all three variables were positive and statistically significant with Household Income having the highest correlation with Economic Development (r = 0.779, p < .001), followed by Program Development (r = 0.766, p < .001). The regression model was found to have a very high explanatory power as the two predictors explained 71.1% of the variance in Economic Development (R² = 0.711, Adjusted R² = 0.707). Household Income (B = 0.449, β = 0.480, p < .001) and Program Development (B = 0.423, β = 0.440, p < .001) were both significant positive predictors with Household Income slightly more relative in its contribution. Low standard error of the estimate (0.101) means high predictive accuracy. The results indicate that the two development programs and the household income are complementary approaches to economic development in conflict-affected areas. The unexplained 29% of the variance, however, underscores the importance of future research that takes into account other variables, including education, infrastructure and institutional quality. The study offers policy-relevant lessons and findings for policy makers, development practitioners and international partners on how to develop effective policies for rural development in Afghanistan.