Fiscal Decentralization and Human Development in Selected Developing Countries in Asia: Role of Institutionali
The paper aims to investigate the impact of fiscal decentralization on human development and moderating role of political institutions in selected Asian countries for the time period 1990-2019, applying panel data Fixed and Random Effects models. The empirical findings show that fiscal decentraliza...
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| Format: | Article |
| Language: | English |
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National University of Sciences and Technology
2023-08-01
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| Series: | NUST Journal of Social Sciences and Humanities |
| Subjects: | |
| Online Access: | https://njssh.nust.edu.pk/index.php/njssh/article/view/158 |
| _version_ | 1797738503120879616 |
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| author | Amna Khalid Bushra Yasmin |
| author_facet | Amna Khalid Bushra Yasmin |
| author_sort | Amna Khalid |
| collection | DOAJ |
| description |
The paper aims to investigate the impact of fiscal decentralization on human development and moderating role of political institutions in selected Asian countries for the time period 1990-2019, applying panel data Fixed and Random Effects models. The empirical findings show that fiscal decentralization at both the provincial and local levels significantly affects human development. The optimal level of fiscal decentralization is computed at 1.143 and 0.229, respectively, suggesting that fiscal decentralization above this level may revert the results for human development. The non-linear specification of the model also portrays a rising human development in the wake of fiscal decentralization but at a decreasing rate. Moreover, the role of institutionalization is proved effective in the case of the countries where provincial-level decentralization is controlled in the model. The results imply that a lack of proper coordination and mismanagement due to many governance tiers can subside human development. However, fiscal decentralization is an essential factor for Asian countries to increase the efficiency of the public sector if supported with a controlled decentralization at the sub-national level.
JEL Classification: H50, H70, O15
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| first_indexed | 2024-03-12T13:44:42Z |
| format | Article |
| id | doaj.art-0eade0d97e1f4f63b141942cd4a519d8 |
| institution | Directory Open Access Journal |
| issn | 2520-503X 2523-0026 |
| language | English |
| last_indexed | 2024-03-12T13:44:42Z |
| publishDate | 2023-08-01 |
| publisher | National University of Sciences and Technology |
| record_format | Article |
| series | NUST Journal of Social Sciences and Humanities |
| spelling | doaj.art-0eade0d97e1f4f63b141942cd4a519d82023-08-23T09:41:54ZengNational University of Sciences and TechnologyNUST Journal of Social Sciences and Humanities2520-503X2523-00262023-08-019110.51732/njssh.v9i1.158Fiscal Decentralization and Human Development in Selected Developing Countries in Asia: Role of InstitutionaliAmna Khalid0Bushra Yasmin 1Department of Economics, Fatima Jinnah Women University, RawalpindiDepartment of Economics, Fatima Jinnah Women University, Rawalpindi The paper aims to investigate the impact of fiscal decentralization on human development and moderating role of political institutions in selected Asian countries for the time period 1990-2019, applying panel data Fixed and Random Effects models. The empirical findings show that fiscal decentralization at both the provincial and local levels significantly affects human development. The optimal level of fiscal decentralization is computed at 1.143 and 0.229, respectively, suggesting that fiscal decentralization above this level may revert the results for human development. The non-linear specification of the model also portrays a rising human development in the wake of fiscal decentralization but at a decreasing rate. Moreover, the role of institutionalization is proved effective in the case of the countries where provincial-level decentralization is controlled in the model. The results imply that a lack of proper coordination and mismanagement due to many governance tiers can subside human development. However, fiscal decentralization is an essential factor for Asian countries to increase the efficiency of the public sector if supported with a controlled decentralization at the sub-national level. JEL Classification: H50, H70, O15 https://njssh.nust.edu.pk/index.php/njssh/article/view/158State and Local Government,Human Development Index,Huntington’s Approach. |
| spellingShingle | Amna Khalid Bushra Yasmin Fiscal Decentralization and Human Development in Selected Developing Countries in Asia: Role of Institutionali NUST Journal of Social Sciences and Humanities State and Local Government, Human Development Index, Huntington’s Approach. |
| title | Fiscal Decentralization and Human Development in Selected Developing Countries in Asia: Role of Institutionali |
| title_full | Fiscal Decentralization and Human Development in Selected Developing Countries in Asia: Role of Institutionali |
| title_fullStr | Fiscal Decentralization and Human Development in Selected Developing Countries in Asia: Role of Institutionali |
| title_full_unstemmed | Fiscal Decentralization and Human Development in Selected Developing Countries in Asia: Role of Institutionali |
| title_short | Fiscal Decentralization and Human Development in Selected Developing Countries in Asia: Role of Institutionali |
| title_sort | fiscal decentralization and human development in selected developing countries in asia role of institutionali |
| topic | State and Local Government, Human Development Index, Huntington’s Approach. |
| url | https://njssh.nust.edu.pk/index.php/njssh/article/view/158 |
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