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 58
- Downloads 0
Entrepreneurship Intension among MBA Graduates: Impact of Entrepreneurial Ecosystem Factors
The research aims to examine the effects of an entrepreneurial ecosystem factors on entrepreneurship intension among MBA students. The study used a perception-based survey among 343 students using 25 items of a 7-point L...
Perception of Employees Regarding Employment Opportunities Created under CPEC: A Case Study of Coal Fire and Solar Project in Punjab, Pakistan
Purpose: CEPC is a mass investment for the struggling economy of Pakistan as it opens up new avenues of opportunities. The current study aims to probe employees’ perception working in coal power projects in central and s...
Does the Internal Borrowing of the Pakistani Government affect Corporate Leverage?
For the past few years, the government of Pakistan has increased its domestic borrowing to a record level. This increased government borrowing could have reduced funds for investment by the non-financial corporate sector...
Corruption, Trade Openness and Environmental Quality: Evidence from Developing Countries
The effects of corruption and trade on environmental quality have significance in open economies. This study has explored the impact of corruption and trade openness on environmental quality in 70 developing countries by...
Inflation and Unemployment Effect Economic Growth
Almost all nations want to achieve steady economic development. It has been practically hard to reach this target because of the diversity of elements that impact economic expansion. Its most important aspect of the soci...