Can fiscal decentralization promote public service deliveries? evidence from Pakistan

This study is conducted to empirically analyze the impacts of fiscal decentralization on public service deliveries in case of Pakistan. The study based on annual data which range from 1972 to 2009. Autoregressive Distributive Lag model is employed to estimate the long run coefficients. The finding of the study suggest that in long run vertical balances have no impacts on health sector while the fiscal transfers significantly influences the infant mortality rate. On the other hand in short run both vertical balances and fiscal transfers have significant impacts on public service deliveries (health). Other variables also showed significant impacts on public service deliveries. Therefore it can be concludes that devolution of fiscal powers from central government to the local governments are helpful in reducing the infant mortality rate in case of Pakistan.