Modeling the Philippine cities' competitiveness toward a sustained development amid COVID-19 pandemic

Abstract

Cities and urban centers are viewed as drivers of regional and national development. The COVID19 pandemic and the subsequent enhanced community quarantine (ECQ) implemented by the Philippine government and related public mobility restrictions imposed had resulted to closure of businesses – from the micro, small, and medium enterprises (MSMEs) sector to several major industries in regional and provincial centers across the country. In the current crisis, it is argued that urban centers play a crucial role in sustaining the country’s competitiveness. Thus, we should not limit our understanding of cities competitive on rankings alone. Assessing the vital signs of competitiveness in terms of the underlying fundamentals that ultimately drive these results and providing prescriptions to address the economic challenges we are facing in this time of pandemic are also necessary. It is then at this level that the interrelationships of the four pillars of competitiveness – economic dynamism, government efficiency, infrastructure, and resiliency, should be understood better. Applying the structural equation modeling (SEM) approach, this study analyzes the interrelationships of these four pillars of competitiveness using the Cities and Municipalities Competitiveness Index (CMCI) data from 2017-2019. Through model development and analysis, the findings in this study provide direction for Philippine cities in framing their development agenda and recommendations for local government officials and development planners on what to prioritize in attaining and sustaining local competitiveness particularly in this very challenging time.