Fiscal Decentralization and Education Index: Evidence from Punjab, Pakistan

Abstract

The study examines how fiscal decentralization affects the education index at the district level in Pakistan's Punjab province, which has five components. Disparities in the distribution of public services have existed throughout Pakistan's history, and current research on regional development emphasizes the importance of evaluating human development phenomena using spatial models like density, locality, and distance. According to the study's findings, the distance between districts and the capital city determines the significant positive effects of fiscal decentralization on the district-level education index; the more "distance from the city" that districts are from the city, the greater the positive effects of fiscal decentralization. Since geography affects the delivery of public services, differences between districts should be addressed by enhancing social and economic institutions and infrastructure in the nation's underdeveloped areas.