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Different dimensions of decentralization and rural–urban poverty in Pakistan

Author

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  • Muhammad Shahid
  • Khalil Ahmad
  • Rukhsana Kalim

Abstract

The process of decentralization plays a vital role to enhance the welfare of society through the provision of public goods and services. This study investigates the impact of different dimensions of decentralization on rural–urban poverty and total poverty for Pakistan. For empirical analysis, this study uses time‐series data covering the period from 1980 to 2018. The auto‐regressive distributive lag model bounds testing cointegration method is used for long‐run estimation and error correction dynamic for short‐run movements of variables. The results show that fiscal and administrative decentralization are more beneficial for overall and rural–urban poverty reduction. The surprising results of political decentralization increases poverty overall in the case of Pakistan. For poverty reduction, the government should try to reduce the political concentration of elite groups in Pakistan. Moreover, to curtail poverty, government policy should be focused on effective strategies to address inflation and development of GDP per capita growth. 权力下放过程通过提供公共物品和服务,在提高社会福利一事中发挥着至关重要的作用。本研究调查了权力下放的不同维度对巴基斯坦城乡贫困和总体贫困的影响。对于实证分析,本研究使用1980年至2018年间的时间序列数据。自回归分布滞后模型(ARDL)边界检验协整方法用于对变量的短期变化进行长期估计和误差校正动态。结果表明,财政分权和行政分权更有利于整体减贫和城乡减贫。出乎意料的是,政治分权从总体上增加了巴基斯坦的贫困情况。在减贫方面,政府应努力降低巴基斯坦精英群体的政治集中度。此外,为了减少贫困,政府政策应重点关注用于应对通货膨胀和人均GDP增长的有效战略。 El proceso de descentralización juega un papel vital para mejorar el bienestar de la sociedad a través de la provisión de bienes y servicios públicos. Este estudio investiga el impacto de diferentes dimensiones de la descentralización en la pobreza rural‐urbana y la pobreza total en Pakistán. Para el análisis empírico, este estudio utiliza datos de series de tiempo que cubren el período de 1980 a 2018. El método de cointegración de prueba de límites del modelo de rezago distributivo autorregresivo (ARDL) se usa para la estimación a largo plazo y la dinámica de corrección de errores para el corto plazo. movimientos de variables. Los resultados muestran que la descentralización fiscal y administrativa son más beneficiosas para la reducción de la pobreza general y rural‐urbana. Los sorprendentes resultados de la descentralización política aumentan la pobreza en general en el caso de Pakistán. Para la reducción de la pobreza, el gobierno debería tratar de reducir la concentración política de grupos de élite en Pakistán. Además, para reducir la pobreza, la política del gobierno debe centrarse en estrategias efectivas para abordar la inflación y el desarrollo del crecimiento del PIB per cápita.

Suggested Citation

  • 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.
  • Handle: RePEc:wly:povpop:v:14:y:2022:i:2:p:166-183
    DOI: 10.1002/pop4.338
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