What Can Municipalities Do to Enhance Competitive Advantage?

Constantino G. Medilo Jr., Frederick C. Aniga


This study provided evidence on how to attain competitive advantage in rural areas based on the characteristics of competitive communities. The features of competitive communities are from all the 18 municipalities in the province of Southern Leyte, Philippines. This paper used the endogenous growth model as a springboard in analyzing how to attain competitive advantage in the local economy through discriminant analysis. The results showed an 89.5% chance of being correct and identified ten municipalities in the province of Southern Leyte area,which have attained competitive advantage. The results further showed that to be come a competitive municipality, Local Government Units(LGU)will have to increase density,increase area, improve revenue classification, and increase the number of gainful workers. Also, to become a competitive municipality,the LGU must also decrease the average house hold size, the rate of population increase, and its exposure to natural hazards. This study suggests that endogenous growth factors are essential for a community to become economically competitive.


Local economy; Local governments; Philippine studies; Social sciences


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