DRIVERS OF ECONOMIC DYNAMISM AMONG THE MUNICIPALITIES IN THE 1ST DISTRICT OF BATANGAS

This study aimed to identify the key drivers of economic dynamism among the municipalities in the 1st District of Batangas, drawing on the framework established by D’Lonsod et al. (2019), which identified government efficiency, infrastructure, and resiliency as core pillars of economic competitiveness. Utilizing secondary data from the DTI-Cities and Municipalities Competitiveness Index (CMCI) portal, the study analyzed data spanning from 2019 to 2024. Employing the ex-post facto research method and qualitative research method, the researcher used graphical analysis descriptive statistics, and multiple regression models to examine trends and relationships among the selected variables. On the other hand, in identifying the best model the following tests were used such as Hausman Test, Jarque Bera Test, Multiple Regression and Variance Inflation Factor Test. The findings reveal that the economic dynamism of the municipalities in the 1st District of Batangas exhibited fluctuating trends over the five-year period. Government efficiency, infrastructure, and resiliency all showed a general downward trajectory, with only limited signs of recovery in recent years. The best-fitting model, ED = β₀ + β₁GE + β₂IN + β₃RS + µ, indicated that infrastructure is the primary driver of economic dynamism (coefficient = 0.544759; p = 0.0011). Further analysis using a dummy variable for 1st class municipalities revealed that both infrastructure and resiliency significantly influence economic dynamism, though resiliency shows an inverse relationship. These findings suggest that strategic investment in infrastructure, alongside careful management of resilience measures, is crucial for enhancing economic performance among municipalities in the district.