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Abstract

This study examines the roles of foreign direct investment, foreign aid, and population growth in poverty reduction in Afghanistan during 2002–2022. The study is important because poverty remains one of Afghanistan's major economic and social challenges, and identifying its key determinants is essential for effective economic policymaking. Using a quantitative, analytical approach, secondary data from the World Development Indicators and the UNDP were analyzed using the Autoregressive Distributed Lag (ARDL) model. The findings indicate that foreign direct investment and foreign aid have a negative and significant effect on poverty reduction in the long run. Population growth is not significant in the long run, but it has a positive effect in the short run. Moreover, GDP per capita has a positive and significant effect on poverty reduction in both the short- and long-run, whereas trade does not have a significant impact.

Keywords

ARDL Poverty Reduction Foreign Direct Investment Foreign Aid Population Growth

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Khudajo, M. A., & Qany, S. (2026). The Role of Foreign Direct Investment, Foreign Aid, and Population Growth in Poverty Reduction in Afghanistan during 2002–2022. Journal of Social Sciences - Kabul University, 9(1), 31–52. https://doi.org/10.62810/jss.v9i1.458
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