Effect of Government Efficiency, Infrastructure, and Resiliency on Economic Dynamism Among Cities in Mindanao (2017-2020)

Abstract

The Cities and Municipalities Competitiveness Index (CMCI) in the Philippines consists of four pillars namely Economic Dynamism, Government Efficiency, Infrastructure, and Resiliency. As Mindanao participates in the CMCI survey, cities continually increase their participation on the survey, and there are emerging changes in the indicators that evaluate competitiveness as time goes by to fulfill the necessary factors of competitiveness scale. Thus, this study aims to examine how government efficiency, infrastructure, and resiliency together with their indicators affect the economic dynamism among Mindanao cities using secondary data from 2017 to 2020. Data of CMCI survey results gathered from Department of Trade and Industry (DTI) were analyzed using the Panel-Corrected Standard Error (PCSE). Analysis found that Government efficiency, Resiliency and Infrastructure have positive effect on economic dynamism among Mindanao Cities, but only infrastructure appeared to be significant. Moreover, indicators under each pillar vary on how significantly it contributes to economic dynamism. Government efficiency indicators such as Business registration efficiency, Capacity to Health Services and Presence of Investment Promotion as well as Infrastructure indicators including Availability of basic utilities, financial technology capacity, Road Network, and Health Infrastructure significantly contribute to the economic dynamism among Mindanao Cities. Resiliency Indicators particularly Disaster Risk Reduction Management Plan (DRRMP), Emergency Infrastructure, Employed Population, and Utilities have positive and significant effect on economic dynamism. However, Budget for DRRMP and Land Use Plan have negative and significant effect economic dynamism. Hence, this study suggests that the local government must evaluate those significant indicators and develop policies and programs that boost their economic dynamism. Using those significant indicators, they may be able to see the weak points where they should need to improve while continuing to develop and sustain the indicators where they are strong.