Methodology | Cities and Municipalities Competitiveness Index
The different data that are gathered to form the index are unique and depend on its nature and type. In order to compute for the index and rank the different components, there is a need to understand the
weighing of each component and the manner of computing each indicator.
Similar to other indices, the competitiveness index ranking has a total index value of 100, representing a fully competitive local unit.
The index is composed of four core components with each component representing about 25% of index value, to with:
Economic Dynamism 25%
Governance Efficiency 25%
Ideally, the number of indicators to be gathered should be equal for each of the four (4) components of the index. There are 10 indicators
per core component making each indicator represent 2.5%. Even if the number of indicators per component are lower or higher than 10, the core
component will still retain 25% weight. What will change are the weights within the core component. In this version of the index, many indicators
were computed from the composite values of two or more sub-indicators. For instance, health infrastructure is composed of public and private data for
facilities and rooms available. Thus, there are two components of a single indicator on health infrastructure. The two sub-indicators are ranked separately
but are added back as a composite indicator.
C. STANDARDIZING THE COMPUTATIONS
To standardize the computations, we follow the process of computing the components of the human
development index (HDI) using our standard formula or Formula 1
D. PROVINCIAL RANKING
There are two parameters to qualify for the ranking of the "Most Competitive Province" detailed as follows:
The combined population of all participating LGUs under the province should constitute
at least 60% of the TOTAL PROVINCIAL POPULATION.
The covered participating localities must be 90% of the TOTAL NUMBER OF LGUs UNDER A PROVINCE.
For those provinces which qualify given the above conditions, the scoring is calculated as the population and income weighted average
of the LGUs covered. Scores of the LGUs covered are then aggregated.