Fiscal Decentralisation and Economic Growth in Pakistan

Bahauddin Zakariya University, Multan.
Pakistan development review 02/2006; 45(4):845-854.
Source: RePEc


The impact of fiscal decentralisation on economic growth is a widely-debated topic in the development literature. Economists and policy-makers are of the view that the decentralisation of a nation's fiscal structure is an effective strategy to promote economic growth and to accelerate the pace of economic development. This study analyses the impact of fiscal decentralisation on economic growth of Pakistan for the period 1971-2005. We employed econometric time-series technique for the empirical data analysis. The results suggest that fiscal decentralisation has a positive impact on economic growth. It is concluded that at the early stage of development, central government is in a better position to tackle fiscal responsibilities. Moreover, it is also concluded that if the shares of provincial government expenditures and revenues rise continuously, then it can slow down the pace of economic growth.


Available from: Shahnawaz Malik, Jul 28, 2015
  • Source
    • "have also used such type of growth model for Pakistan. Also see, among others, Khan (2005); Iqbal and Sattar (2005) and Malik, et al. (2006) for these types of growth models in Pakistan. "
    [Show abstract] [Hide abstract]
    ABSTRACT: This paper explores the empirical association between democracy and per capita output growth in Pakistan using data for the period 1947 to 2006. The findings of the paper indicate a weak negative association between democracy and output growth. Consistent with some current empirical literature, democracy is also found to influence output growth indirectly. The empirical results are robust to different democracy variables and output growth equation specifications. The empirical findings also highlight the role of other variables in determining output growth and, except for rising oil prices, show its positive linkage to physical and human capital, government consumption, openness of trade practices and inflation.
    Pakistan development review 09/2009; 48(3):269-289.