Impact of Fiscal Decentralisation on Human Development: A Case Study of Pakistan

Rashid Mehmood and Sara Sadiq
Additional contact information
Rashid Mehmood: Applied Economics Research Centre, Karachi
Sara Sadiq: Applied Economics Research Centre, Karachi

The Pakistan Development Review, 2010, vol. 49, issue 4, 513–530

Abstract: It is often debated among economists whether the efficiency of sub-national governments is different and better for the provision of services than that of national governments. Most of the previous studies show that fiscal transfers increase the responsibilities of sub-national governments and enhance the ability for revenue generation. The main focus of this study is to analyse the relationship between human development and fiscal decentralisation; to find out the channels through which decentralisation stimulates the pace of economic growth and affects the provision of health and education facilities across the provinces. By using econometric time series techniques for empirical analysis, we find that there exists a long-run relationship between fiscal decentralisation and human development along with urbanisation. Results suggest that the effectiveness of fiscal decentralisation can increase human development; it also strengthens the federation by creating harmony among the provinces.

Keywords: Fiscal Decentralisation; Human Development (search for similar items in EconPapers)
JEL-codes: H77 O15 (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.pide.org.pk/pdf/PDR/2010/Volume4/513-530.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pid:journl:v:49:y:2010:i:4:p:513-530

Access Statistics for this article

More articles in The Pakistan Development Review from Pakistan Institute of Development Economics Contact information at EDIRC.
Bibliographic data for series maintained by Khurram Iqbal ().