Panel Regression Analysis of Governance as Predictor of EconomicDynamism in Bicol Region, Philippines
Keywords:
Panel regression, Government efficiency, Economic dynamism, Competitiveness IndexAbstract
The study analyzed government efficiency as a predictor of economic dynamism in the a05 municipalities of the Bicol Region, Philippines in 2019-2023. Specifically, it: (a) investigated the performance of the government units and the local economy of the target towns; (b) surveyed the government efficiency indices established by the DTI Competitiveness Bureau; (c) surveyed the economic dynamism indices established by the same bureau; and (d) analyzed the influence of government efficiency indices on the economic dynamism indices of the municipalities. The panel regression analysis revealed a positive relationship between government efficiency and economic dynamism. The R-squared indicated good fit with town-fixed effects. The F-statistic and p-value showed that the model is statistically significant overall. The ANOVA results disclosed that both town-level effects and government efficiency are substantial contributors to explaining variation in economic dynamism. The regression using lagged variable model uncovered that the lagged government efficiency variable had a positive and statistically significant effect on economic dynamism which suggested that government efficiency may take time to affect economic dynamism. Moreover, this implied that higher government efficiency the previous year is associated with an increase in economic dynamism in the current year. This study espouses an unwavering and sustained implementation of national directives because there is scientific basis that efficient government services in the Bicol Region actually lead to economic growth and development
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