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Examining the Conceptualization and Correlates of Competitiveness of Cities and Municipalities in the Philippines

Reno R. Rayel, DBA
University of Perpetual Help System DALTA-Molino
Salawag-Zapote Road, Molino 3, City of Bacoor, 4102 Philippines



In examining the conceptualization and correlates of competitiveness of cities and municipalities in the Philippines, this study established that competitiveness is multidimensional, and its factor structure differs by the type of LGU. Furthermore, the study found that IRA dependency has a negative effect on “Economic Dynamism” and the combined “Government Efficiency and Infrastructure” on LGUs of all income classes, but the effect among 5th/6th class LGUs is most pronounced. In addition, “IRA dependency” has a negative effect on the “Resiliency” of the 5th/6th class LGUs’ but not on their richer counterparts. Household poverty, on the other hand, is generally negatively associated with competitiveness, although the magnitude of this relationship varied by LGU types. Through structural equation modeling, confirmatory factor analysis determined which of the several hypothetical factor structure models provided the best-fitting conceptualization of competitiveness. The final model was subjected to multiple group analysis to test its invariance across income groups. Finally, “IRA dependency” and “Household poverty” were integrated into the final model to examine their association with competitiveness. In improving competitiveness, the study recommends policymakers and local government executives target their policies, efforts, and resources on particular indicators based on the type of LGU, even as some indicators need to be addressed, established, or enhanced across LGU types.

Keywords: correlates of competitiveness, structural equation modeling, group invariance, IRA dependency and competitiveness, household poverty and competitiveness

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