Fiscal Decentralization and Health Outcome: Case of Pakistan

Abstract

Present study is an attempt to investigate the effect of fiscal decentralization on health outcomes in Pakistan. This paper is based on time series data which covers the period from 1982 to 2019. The idea behind the present study is that fiscal decentralization plays an important role in economic development and improving health outcomes. Fiscal decentralization improves the efficiency of the public institution, which can lead to an improved health facility. To estimate the coefficients of the equation, Auto-regressive distributive lag model is used. The finding of this study shows that fiscal decentralization improves health outcomes. So, this study concludes that the federal government should share its power with the local government to improve health indicators.