Analysing the Impacts of Fiscal Decentralisation on Public Services Delivery: Evidence from Health Sector in Pakistan
DOI:
https://doi.org/10.55737/qjss.910387224Keywords:
ARDL, Health, Fiscal Transfer, Infant Mortality, Public Services, Vertical BalancesAbstract
Delegation of power can of political, social and fiscal authority and all the three has been considered an important policy reform to achieve high growth, better delivery of services and stabilize the macro uncertainties in economy. Among the three types of decentralization, this study was conducted to assess the fiscal aspect of decentralization and its impacts were analyzed on public services deliveries, which is one of the core objectives of power delegation. Pakistan was taken as a sample case. Annual time series data spanning from 1974 to 2021 were sourced from both the World Bank and the economic survey of Pakistan. Fiscal decentralization was measured through fiscal transfers and vertical balances while public services were proxy through health sector. In health sector this study took infant mortality rates because of the ways availability of data. Per capita GDP, Rural-Urban ratio and health expenditures were taken as a control variable. The results were extracted through ARDL and it was found that between the two proxies of fiscal decentralization, fiscal transfers is more effective than vertical balances and therefore it was suggested that government may increase the share of provinces to further improve the delivery of public services in Pakistan.
Downloads
References
Ahmed, M. (2013).Fiscal decentralisation and Political economy of Poverty Reduction: theory and Evidence from Pakistan (Doctoral dissertation, Durham University).
Ahmed, M., & Lodhi, A. (2013). Impact of fiscal decentralisations on education and healthcare, outcomes: empirical evidence from Pakistan. J. App. Em. Sc. 4(2). 122-134. http://dx.doi.org/10.36785/jaes.42149
Akai, N., Nishimura, Y., & Sakata, M. (2007). Complementarity, fiscal decentralization and economic growth. Economics of Governance, 8(4), 339-362. https://doi.org/10.1007/s10101-007-0032-5
Anand, S., & Ravallion, M. (1993). Human development in poor countries: on the role of private incomes and public services. Journal of economic perspectives, 7(1), 133-150.
Anand, S., & Ravallion, M. (1993). Human development in poor countries: On the role of private incomes and public services. Journal of Economic Perspectives, 7(1), 133-150. https://doi.org/10.1257/jep.7.1.133
Asfaw, A., Frohberg, K., James, K. S., & Jutting, J. P. (2004). Modeling the impact of fiscal decentralisation on health outcomes: empirical evidence from India (No. 1546-2016-132227). https://doi.org/10.22004/ag.econ.18731
Bird, R. M. R. D. Ebel, & Wallich, C. I. (1995). Decentralisation of the Socialist State. Washington D.C.: World Bank.
Bird, R. M., & Wallich, C. I. (1993). Fiscal Decentralisation and Intergovernmental Relations in Transition Economies: Towards a Systematic Framework of Analysis. Policy Research Working Paper WPS: 1122, World Bank, Washington, D.C.
Box, & Jinkin. (1984). Time Series Analysis: Forecasting and Control. 2nd ed. San Francisco Holden Day
Brown, R. L., Durbin, J., & Evans, J. (1975). Techniques for Testing the Constancy of Regression Relationships Over Time. Journal of the Royal Statistical Society, 37(2), 149–163. https://doi.org/10.1111/j.2517-6161.1975.tb01532.x
Busemeyer, M. R. (2007). Determinants of public education spending in 21 OECD democracies, 1980–2001. Journal of European Public Policy, 14(4), 582-610. https://doi.org/10.1080/13501760701314417
Davey, K. Fiscal Decentralization in Eastern Europe: Stages of Reform. The Kosovo Decentralization Briefing Book, 41.
Davidson, J. E., Hendry, D. F., Srba, F., & Yeo, S. (1978). Econometric modelling of the aggregate time-series relationship between consumers' expenditure and income in the United Kingdom. The Economic Journal, 88(352), 661. https://doi.org/10.2307/2231972
Faridi, M. Z. (2011). Contribution of Fiscal Decentralization to Economic Growth: Evidence from Pakistan. Pakistan Journal of Social Sciences (PJSS), 31(1), 1-13. https://pjss.bzu.edu.pk/index.php/pjss/article/view/89
Fatima, M., Naz, S., & Khan, S. U. (2023). Energy Consumption, Economic Growth and Environmental Quality in South Asian Developing Countries: A Panel Data Analysis. Research Journal of Social Sciences and Economics Review, 4(2), 244-258.
Granger, C. W. J., & Newbold, P. (1974). Spurious regressions in econometrics. Journal of Econometrics, 2(2), 111–120. https://doi.org/10.1016/0304-4076(74)90034-7
Gujarati, N. D. (2003). Basic Econometrics. 4th Edition, McGraw-Hill, New York.
Gul, A., Khan, S. U., & Abbasi, R. A. (2023). Vicious Circle of Health Expenditure: Time Series Evidence from Pakistan. Journal of Contemporary Macroeconomic Issues, 4(1), 57–77. Retrieved from https://ojs.scekr.org/index.php/jcmi/article/view/99
Gul, A., Sadiq, S., & Khan, S. U. (2023). Conflicts and The Structure of Economy: A Case of Trade in Pakistan. Journal of Development and Social Sciences, 4(4), 23–42. https://doi.org/10.47205/jdss.2023(4-IV)03
Hanif, I., & Chaudhry, I. S. (2015). Interlinks of fiscal decentralisation and public investment in Pakistan. Pakistan Journal of Commerce and Social Sciences (PJCSS), 9(3), 850-864. http://hdl.handle.net/10419/188226
Hussain, I., & Rana, S. (2010). A comparison of fiscal effort by provincial governments in Pakistan. The Pakistan Development Review, 49(4II), 545-562. https://doi.org/10.30541/v49i4iipp.545-562
Iqbal, N., & Malik, W. S. (2010). Budget balance through revenue or spending adjustment: Evidence from Pakistan. The Pakistan Development Review, 49(4II), 611-630. https://doi.org/10.30541/v49i4iipp.611-630
Khan, H. U., Khan, S. U., & Gul, A. (2023). The Dance of Debt and Growth in South Asian Economies: Panel ARDL and NARDL Evidence. Qlantic Journal of Social Sciences, 4(3), 1-11. https://doi.org/10.55737/qjss.504418329
Khan, U. S., Khan, Z. M., & Gul, A., (2023). Democracy's Role in Shaping Pakistan's Economic Growth: An Empirical Evidence From Pakistan. International Journal of Contemporary issues in social sciences, 2(3), 356-367.
Khattak, N. U., Ahmad, I., & Khan, J. (2010). Fiscal decentralisation in Pakistan. The Pakistan Development Review, 49(4II), 419-436. https://doi.org/10.30541/v49i4iipp.419-436
Koenker, R., & Bassett, G. (1982). Tests of linear hypotheses and l"1 estimation. Econometrica, 50(6), 1577. https://doi.org/10.2307/1913398
Lessmann, C., & Markwardt, G. (2010). One size fits all? Decentralization, corruption, and the monitoring of bureaucrats. World Development, 38(4), 631-646.
Malik, S., Hassan, M., & Hussain, S. (2006). Fiscal decentralisation and economic growth in Pakistan. The Pakistan Development Review, 45(4II), 845-854. https://doi.org/10.30541/v45i4iipp.845-854
Mehmood, R., & Sadiq, S. (2010). Impact of fiscal decentralisation on human development: A case study of Pakistan. The Pakistan Development Review, 49(4II), 513-530. https://doi.org/10.30541/v49i4iipp.513-530
Naeem ur Rehman Khattak, Ahmad, I., & Khan, J. (2010). Fiscal decentralisation in Pakistan. The Pakistan Development Review, 419-436.
Naeem, M. A., Farid, S., Ferrer, R., & Shahzad, S. J. (2021). Comparative efficiency of green and conventional bonds pre- and during COVID-19: An asymmetric multifractal detrended fluctuation analysis. Energy Policy, 153, 112285. https://doi.org/10.1016/j.enpol.2021.112285
Nguyen, H. P. (2008). What is in it for the poor? Evidence from fiscal decentralisation in Vietnam.
Oates, W. E. (1999). An essay on fiscal federalism. Journal of Economic Literature, 37(3), 1120-1149. https://doi.org/10.1257/jel.37.3.1120
Robalino, D. A., Picazo, O. F., & Voetberg, A. (2001). Does fiscal decentralization improve health outcomes? Evidence from a cross-country analysis. Policy Research Working Papers. https://doi.org/10.1596/1813-9450-2565
Sadiq, T. (2010). The causality between revenues and expenditure of the federal and provincial governments of Pakistan. The Pakistan Development Review, 49(4II), 651-662. https://doi.org/10.30541/v49i4iipp.651-662
Shaikh, S., Naeem, I., Nafees, A., Zahidie, A., Fatmi, Z., & Kazi, A. (2012). Experience of devolution in district health system of Pakistan: perspectives regarding needed reforms. JPMA. The Journal of the Pakistan Medical Association, 62(1), 28–32. https://pubmed.ncbi.nlm.nih.gov/22352097/
Skira, M. (2006). Fiscal decentralisation and Poverty. Department of Economics, Andrew Young School of Policy Studies. Summer.
Uchimura, H., & Jütting, J. P. (2009). Fiscal decentralization, Chinese style: good for health outcomes?. World Development, 37(12), 1926-1934.
Usman, N. N. S. A. S. (2021). Fiscal Decentralisation and Quality of Education in Pakistan. Journal of Contemporary Macroeconomic Issues, 2(1), 58-66. https://ojs.scekr.org/index.php/jcmi/article/view/23
Walther-Thomas C. S. (1997). Co-teaching experiences: the benefits and problems that teachers and principals report over time. Journal of learning disabilities, 30(4), 395–407. https://doi.org/10.1177/002221949703000406
Xiaoli, S. (2007). The Effects of Fiscal Decentralization on Compulsory Education in China: For Better or Worse. JOAAG, 2(1), 40-53. http://joaag.com/uploads/Sun.pdf
Downloads
Published
Issue
Section
License
Copyright (c) 1969 sifat khan
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
