Fiscal Decentralization and Socioeconomic Implications in Pakistan: Focus on Pre & Post 7 th NFC Award

Abstract

This paper investigates the socioeconomic impact of fiscal decentralization in Pakistan. The time-series sample during 1982-2018 is divided between pre and post-periods of the 7th National Finance Commission (NFC) Award of 2009. The socioeconomic impacts were separated into growth, education, and health. Results found that there is a positive long-run relationship across the variables. At the same time, the total effect from composite decentralization has positively impacted economic growth and education but none to the health sector after the 7th NFC award. The outcomes have been elaborated with socioeconomic analysis. The study also provides policy recommendations based on empirical outcomes.