The Effect of Fiscal Decentralization on Sectoral Green Total Factor Productivity in Pakistan: An Empirical Evidence
Journal Title: Pakistan Journal of Economic Studies - Year 2022, Vol 5, Issue 2
Abstract
The study endeavors to measure sectoral Green Total Factor Productivity (GTFP) and the role of fiscaldecentralization and key environmental regulations in affecting GTFP, for the manufacturing sector ofPakistan over the time period 1975-2019. The growth accounting method is employed to measuresectoral GTFP to examine the sector’s standing in attaining long-run environmental sustainability.Moreover, the role of fiscal decentralization and other lead determinants of GTFP is investigated byemploying the Fully Modified OLS estimation technique. The study provides a highly volatile trend ofsectoral green factor productivity and proved non-linearity in fiscal decentralization and sectoral GTFPrelationship. The role of institutional quality also appears as positively significant for GTFP. Findingssupport a positive relationship between fiscal decentralization and GTFP however the link weakens andturns negative when excessive decentralization is adopted and hence, shows a trajectory of risingsectoral productivity but at decreasing rate with the pace of decentralization. National EnvironmentalProtection Act 1997 and National Conservation Strategy 2005 have appeared significantly and positivelycontributing with an overwhelming effect on green factor productivity for the manufacturing sector anddemands strengthening of environmental policies network along with its rigorous implementation.Moreover, a dedicated though cautious move towards fiscal decentralization is required to achieveenvironmental sustainability in Pakistan.
Authors and Affiliations
Kinza Nadeem, Bushra Yasmin, Iffat Irshad
Keywords
Related Articles
- EP ID EP735659
- DOI -
- Views 45
- Downloads 0
A Cross-Sectional Analysis of Determinants of Poverty: Evidence from the Agriculture Sector in South Punjab, Pakistan
Purpose: This study investigates the factors contributing to poverty in South Punjab's agricultural region in Pakistan. By conducting a cross-sectional analysis, it examines how household characteristics, agricultural pr...
Studying the Impact of Composition of Personal Empowerment on Beneficiaries of Microcredit
The current study aimed to study the impact of dimensions of personal empowerment and microcredit upon the worth of life of women borrowers. This research originated to unlock the potential of a dimension of personal emp...
Causal Economic Interactions between CO2 Emissions and Economic Growth
The environmental penalties of trade openness and foreign direct investment (FDI) got significant consideration in the current era. In this article, we aim to explore the impact of causal interactions of CO2 emission wit...
Impact of Corruption on Economic Growth in Pakistan: A Comparative Approach
This work is intended to find a relationship between corruption and economic growth. Economic growth is viewed in terms of per capita GDP and corruption is quantified as corruption perception index (CPI) published by Tra...
An Introduction to Monetary Policy Framework in Pakistan: Instruments, Objectives, and Mechanism
In an economy, a central bank's behavior in formulating monetary policy is characterized by some specific actions. These actions meet the complex process of decisions about how a central bank regulates its policy instrum...