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The Impact of Devolution on Government Size and Provision of Social Services: Evi¬dence from Pakistan

Author

Listed:
  • Qurat ul Ain

    (School of Public Finance and Taxation, South Western University of Finance and Economics)

  • Tahir Yousaf

    (Business School, Sichuan University)

  • Yan Jie

    (School of Public Finance and Taxation, South Western University of Finance and Economics)

  • Yasmeen Akhtar

    (Noon of Business School, University of Sargodha)

Abstract

This paper provides empirical evidence on the association between post-2001 devolution reform policy, government size, and specific components of government expenditures based on a sample of panel data of provincial units in Pakistan from 1990 to 2015. The results demonstrate that devolution is associated with a larger government size, which provides empirical support for the common-pool hypothesis, implying that the decentralization that matters for the size of the general government depends on how sub-na¬tional governments finance their expenditures. Moreover, the findings suggest a significant increase in the magnitude of Health and education facilities at the local level following the devolution reforms.

Suggested Citation

  • Qurat ul Ain & Tahir Yousaf & Yan Jie & Yasmeen Akhtar, 2020. "The Impact of Devolution on Government Size and Provision of Social Services: Evi¬dence from Pakistan," Hacienda Pública Española / Review of Public Economics, IEF, vol. 234(3), pages 105-135, September.
    • Handle: RePEc:hpe:journl:y:2020:v:234:i:3:p:105-135
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    More about this item

    Keywords

    Devolution reforms; size of government; Social service delivery; common-pool hypothesis; Leviathan hypothesis.;
    All these keywords.

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I20 - Health, Education, and Welfare - - Education - - - General
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

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