Financial decentralization and promotion of human capital

In the literature of macroeconomics, the promotion of human capital is so important that if economic growth occurs and this growth cannot improve the condition of human capital, it seems that the efforts have been fruitless. Human capital is measured through the HDI index, and due to the need to improve it, many studies have been conducted in this field. Human capital in any country is based on the state of human capital in the provinces of the country. Providing better services to human capital will improve this huge capital, and achieving it requires the existence of sufficient funds and powers in the provinces. The vastness of the country may not allow the government to optimally allocate resources, therefore, usually local authorities try to have more powers for the growth of human capital through various pursuits and bargaining, which increases the authority of the governors, which is financial decentralization and financial decentralization. It is a multi-dimensional process in which some powers are transferred from the central government to the governors, and the most important of which is the return of all the revenues of each province to the same province and the sending of grants to the provinces through the central government. This study was conducted to determine the effect of financial decentralization on human development in the provinces of Iran, in which three cities and towns were selected as samples from each province. The technique used in this research is panel data. In this method, the data have time series and cross-sectional characteristics, consist of several dimensions and cover several periods. The research period is 1397 to 1400. The equations related to the independent and dependent variables of this research are taken from the research model of Suyanto (2009), Langudi (2006) and Khosini (2006). The results of the research show that the increase in financial decentralization and the return of revenues from each province to the same province and even grants from the central government have a significant positive effect on the amount of public spending, economic growth, reducing the population of low-income people and finally improving the human capital index. It has provinces.