Spatial Analysis of Local Competitiveness: Relationship of Economic Dynamism of Cities and Municipalities in Major Regional Metropolitan Areas in the Philippines

Abstract

The measurement of cities and municipalities competitiveness in the Philippines has been put in place by the Department of Trade and Industry since 2013. However, its use as a spatial planning parameter is lacking in the literature. This paper reviewed the factors that drive competitiveness. The research revealed that “economic dynamism” appeared at the top of the factors that contribute to competitiveness and influence regional development. Given urban and regional planning theories, metropolitan areas were chosen as the most appropriate case study sites that exhibit economic dynamism. The study revealed that the “Economic Dynamism Index”, or EDi, of cities and municipalities are spatially correlated, indicative of their clustering pattern in the economic space. The clustering pattern was determined by treating the EDi as a spatial attribute in the major metropolitan case study areas. Using Moran’s I global spatial autocorrelation analysis, the clustering pattern of cities and municipalities observed through the GIS map was validated by the 99% significance in the spatial statistics of the EDi dataset. This suggests that “complementation” among cities and municipalities exists rather than competition. Thus, sustainable regional spatial/economic development strategies can be reformulated, given the spatial interactions of areas with higher EDi with the less endowed cities/municipalities at the periphery.