IDEAS home Printed from https://ideas.repec.org/a/ris/empecr/0033.html
   My bibliography  Save this article

Empirical Implications of Decentralization Dimensions and the Role of Political Institutions in the Economic Growth of Pakistan

Author

Listed:
  • Shahid, Muhammad

    (National College of Business Administration & Economics, Pakistan)

  • Kalim, Rukhsana

    (University of Management and Technology, Pakistan)

Abstract

Decentralization is the fundamental policy variable used to enhance the allocative efficiency through public spending / tax priorities, subject to the local demand. The current study evaluates the impact of the various dimensions of decentralization on the economic growth of Pakistan for the years 1972-2018. Ng-Perron tests and Kwiatkowski-Phillips-Schmidt-Shin (KPSS) were applied to fix the unit root problem in the time series data. To find the cointegration among decentralization, the role of institutions, and economic growth the Autoregressive Distributed Lag Approach (ARDL) was used. The outcomes suggested that tax decentralization is a growth promoting policy. On the contrary, administrative and political decentralization negatively affect the economic growth. The analysis shows that political freedom also has a growth retarding impact on the economy. The current study is useful regarding the policy implications of the process of decentralization.

Suggested Citation

  • Shahid, Muhammad & Kalim, Rukhsana, 2021. "Empirical Implications of Decentralization Dimensions and the Role of Political Institutions in the Economic Growth of Pakistan," Empirical Economic Review, Department of Economics and Statistics, Dr Hassan Murad School of Management, University of Management and Technology, Lahore, vol. 4(1), pages 52-80.
    • Handle: RePEc:ris:empecr:0033
    as

    Download full text from publisher

    File URL: https://ojs.umt.edu.pk/index.php/eer/article/view/576/210
    File Function: Full text
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Muhammad Shahid & Khalil Ahmad & Rukhsana Kalim, 2022. "Different dimensions of decentralization and rural–urban poverty in Pakistan," Poverty & Public Policy, John Wiley & Sons, vol. 14(2), pages 166-183, June.

    More about this item

    Keywords

    Cointegration; Decentralization; Political Freedom;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:empecr:0033. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sidra Raza (email available below). General contact details of provider: https://edirc.repec.org/data/sbumtpk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.