Decentralization and rural–urban income inequality: implications for inverted-U hypothesis of Pakistan

Shahid, Muhammad; Ahmad, Khalil; Haider, Ayesha; Ali, Safdar

doi:10.1007/s40844-024-00285-z

Evolut Inst Econ Rev

2024

DOI: 10.1007/s40844-024-00285-z

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Decentralization and rural–urban income inequality: implications for inverted-U hypothesis of Pakistan

Muhammad Shahid,

Khalil Ahmad,

Ayesha Haider

et al.

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2024

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Cited by 1 publication

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Decentralization policies and sustainable rural development: A path to eradicating poverty (SDG 1) and hunger (SDG 2)

Ain,

Yousaf,

Tahir

2024

Sustainable Development

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Rural infrastructure development is crucial for achieving sustainable development. It enhances quality of life, improves connectivity, promotes economic growth, and supports food security. Whereas rural infrastructure development is influenced by fiscal decentralization, which enables local administrations to prioritize investments and allocate resources based on local needs and priorities. Given this background, this empirical study investigates the impact of devolution reform policy on rural infrastructure development in Pakistan, employing the Stackelberg model. The findings exhibit a positive relationship between subnational government spending through decentralization and the accessibility to transport and communication services, rural development, and development of irrigation infrastructure. The theoretical model proposes that decentralized information permits efficient decision‐making, with local authorities better equipped to deliver public services aligned with local preferences. Increased public utilization of services is expected as a result of decentralization. The combination of empirical analysis and theoretical foundations suggests that the 2001 decentralization policy enhances the accountability of subnational governments. By providing them with more informed and essential benefits for resource allocation according to voter priorities, this policy ultimately increases the efficiency of public expenditures in achieving sustainable development.

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Decentralization policies and sustainable rural development: A path to eradicating poverty (SDG 1) and hunger (SDG 2)

Ain,

Yousaf,

Tahir

2024

Sustainable Development

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Decentralization and rural–urban income inequality: implications for inverted-U hypothesis of Pakistan

Cited by 1 publication

References 60 publications

Decentralization policies and sustainable rural development: A path to eradicating poverty (SDG 1) and hunger (SDG 2)

Decentralization policies and sustainable rural development: A path to eradicating poverty (SDG 1) and hunger (SDG 2)

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