Local Governments and the Provision of Health and Education within Khyber Pakhtunkhwa: An assessment of the Tiebout Hypothesis

This paper traces the working of various local governments within the Khyber Pakhtunkhwa province of Pakistan in terms of efficiency while providing health and educational facilities. Only those districts of Khyber Pakhtunkhwa having a population of at least one million, were taken into account. The performance of six district local governments in the field of education and health was thoroughly analyzed. The main focus was to assess whether local governments were efficient in the provision of the required services or otherwise. In the context of this study, local governments were perceived as firms, each aiming at the efficient provision and welfare of their respective communities / localities. Annual time-series data for the period 2004 to 2015 was taken. The study revealed the performance and efficiency of each of the selected district governments. The study also confirmed the validity of the Tiebout Hypothesis in terms of the local governments of KP in relevance to the provision of health and educational services. The district government primarily revolves around the needs and aspirations of the common people. This system can perform better if properly implemented and monitored in light of the gross root level input.