A large number of studies on fiscal decentralization have supported the claim that decentralized governments have a greater capacity to approach local preferences and have greater potential for public service delivery, which demonstrates a favorable status of socioeconomic indicators. However, there is no empirical evidence on fiscal decentralization and gender equality. This study empirically examines the effect of fiscal decentralization on gender equality in 29 developing economies from 2006 to 2020 by employing the dynamic panel system generalized method of moments (GMM). The study uses three measures of fiscal decentralization—expenditure, revenue, and composite decentralization—to learn the dynamics of income groups in developing economies, and corruption from the perspective of fiscal decentralization and gender equality. The results demonstrate that fiscal decentralization improves gender equality in the sample of developing economies as well as in the sub-sample of developing economies, i.e., lower-middle income countries and upper-middle income countries subject to the control of corruption, otherwise fiscal decentralization may devastate gender equality in developing economies and upper-middle income economies. Corruption plays a dynamic role in the relationship between fiscal decentralization and gender equality. The desired results of fiscal decentralization may be attained through policy reforms to control corruption. The dynamics of income groups in the sampled economies also have implications for the relationship between fiscal decentralization and gender equality.

The traditional fiscal decentralization theorem claims that decentralized government can provide the goods and services at local level more efficiently. However, empirically it is still to explore that how fiscal decentralization affects gender parity. This study empirically investigates the impact of fiscal decentralization on gender parity in developing economies of Asia, Armenia, Azerbaijan, Indonesia, Iran, Kazakhstan, Kyrgyz, Mongolia, Myanmar, Thailand and Turkey. The study used dynamic penal da ta technique namely system GMM over the period of 2006-2020. The multidimensionality of fiscal decentralization is captured through three measures of fiscal decentralization i.e. expenditure decentralization, revenue decentralization and composite decentralization. Further, it also examines the complementarity between fiscal decentralization and control of corruption to increase the gender parity. The results of the analysis show that expenditure decentralization is increasing the gender parity in developing economies of Asia. Additionally, control of corruption is a necessary reform to get the desired fruits of fiscal decentralization. Countries must focus on corruption aspect of local governments in implementing the expenditure, revenue and composite decentralization.

Purpose: Fiscal decentralization is an emerging phenomenon in Pakistan from the last few decades. A large number of studies have been investigated the socio-economic and political effects of fiscal decentralization in Pakistan. But none of the study has examined that how fiscal decentralization has affected gender parity in education in Pakistan. Design/Methodology/Approach: This study empirically investigated the dynamic relationship between fiscal decentralization and gender equality in education by employing different measures of fiscal decentralization and used autoregressive distributed lag model (ARDL) bounds test approach for cointegration testing for the period of 1975 to 2020.  The bounds tests suggest that the variables of interest are bound together in the long run when gender parity in education is dependent variable. Findings: The long run relationship is also confirmed by the significance of associated equilibrium correction. The robust analysis of this study suggest that fiscal decentralization is improving gender equality in education particularly education expenditure decentralization and revenue decentralization. Implications/Originality/Value: The results are important for fiscal policy formulation in public and social sector in Pakistan. Further, these results might be helpful for other developing countries that share a common experience in applying fiscal decentralization reforms and struggling to reduce gender disparity in education sector.