Rural development (English)

[2L07] Economic Analysis of Income Generation Through Creation of Dairy Farmers Union. A Case Study on Balkh Dairy Union, Afghanistan

*Hamed ARIF SAFI¹, Nomura HISAKO¹, Shoichi ITO¹, Hiroshi ISODA¹ (1. Kyushu University)

Keywords:Propensity Score Matching (PSM), hidden bias, income, production, Dairy Union

Developing effective policies in regions facing geographic challenges remains a formidable task, often impeded by hurdles in translating theoretically sound development strategies into practical implementation. This study focuses on Afghanistan, a nation grappling with geographical disadvantages, particularly in its arid or semi-arid steppes. Despite economic growth, Afghanistan contends with persistent unemployment issues, making the dairy farming sector pivotal for generating employment, enhancing food security, and boosting income. The research evaluates the impact of active dairy union involvement on the economic well-being of farmers in Balkh Province, utilizing the Propensity Score Matching (PSM) method to address selection biases. Through rigorous comparative analysis, the study scrutinizes the effects of union participation on income and production outcomes, offering valuable insights into the role of the dairy sector in economically disadvantaged regions. This research contributes to academic discourse, holding potential for publication in scholarly journals. This comprehensive research uncovers substantial disparities between dairy union members and non-members, emphasizing the influential role of union membership in shaping various characteristics and economic behaviors. Beyond a simple association, the study establishes that union membership significantly impacts critical economic outcomes, contributing to a nuanced understanding of dairy farming dynamics. Stakeholders, including policymakers and farm management, should recognize this intricate influence, guiding the development of targeted interventions to harness the positive aspects of union membership. Addressing spatial disparities is crucial, requiring strategies that consider regional differences in resource access and market opportunities.