Fiscal Decentralization and Health Outcomes: Evidence from Pakistan

Abstract

This study attempts to investigate the impact of fiscal decentralization on health outcome and employed time-series data of 38 years of Pakistan and its four provinces over the period of time 1982 to 2019. The auto-regressive distributive lag model is used for data estimation. The findings reveal that combined fiscal decentralization and expenditure fiscal decentralization plays an important role in improving the health outcome in Pakistan. This study concludes that fiscal decentralization raises the efficiency of health sector. Each provincial government and local government spend revenue according to their needs and priorities, as different localities have different needs and interests.