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A Macroeconomic Analysis of Selected Economic
Development Indicators in the Local Government
Units in Specific Regions in the Philippines
Ivy Benito-Lim
The development concerns affected by economic indicators and being addressed are not new; they are in fact common to most Local Government Units (LGUs). The practices they employ, likewise, do not involve caM
mostly on rising scale use of science but are instead inspired in reproduction of such factors that will confront and effectively address "problems" with the basic tools. These basic tools are accompanied by a vision that requires a collective commitment and cooperation of the entire level of the Philippine society that started as early as the 1980s, where the need to view economic growth was stressed. To do this, the strategies are built around wherein the basic philosophy of these strategies points toward that economic activity initiated mainly by business firms in their different kinds of productive and innovative assembly. Some of these carry out their core activity that offers to include the following: improved productivity, reduced costs, savings in resources, access to new markets, new technologies, workforce and suppliers, increased power in negotiations, in purchasing, and in trade situations, improved access to information and better access to government institutions and programs. These may serve as local-based economic development indicators that sit within an emerged national development agenda. Following the bigger picture, these development indicators often struggle to articulate clearly what development means in relation to the local municipality's programs, and how they will measure progress towards this, where future orientation, development goals and targets, and linkages among different dimensions are made explicit. Thus, the researcher made a macroeconomic analysis to the respective economic indicators in specific five regions in the Philippines and how the factors manifested to LGU's development status based on the current economic indicators manifested. The end goal of the researcher is a proposed set of programs that can practically relate to the remarks based on the current available data and the possible outcomes that can influence the business environment. There are related studies highlighting the theories and findings pertaining generally to the economic plans that are utilized and used as instrument for local development. In the economic sustainable system, studies show that employment growth is less responsive to output growth done previously (Felipe, Hasan and Kapsos 2006). Because the poor's main asset is generally their labor, fewer new CKSC-Institutional Faculty Journal jobs tend to imply less poverty reduction. Underemployment, while difficult to define and harder still to measure consistently, is an even bigger issue. The segmentation of labor markets between urban and rural areas, as well as between the formal and informal sectors, also constrains growth and perpetuates inequalities. It hampers the adjustment to changes in global demand and crimps the emergence of new sectors. Excessive labor-market regulations that have been introduced in several countries to provide social protection— such as minimum wages set above the market-clearing wage and restrictions on hiring and firing employees—often gum up the labor iL .
market. Because they mainly relate to workers in the organized sector, they leave workers in the large unorganized sector unprotected. The use of "inappropriate" capital-intensive techniques may also reduce labor use. Such new jobs are created disproportionately for skilled workers. Outsourcing, foreign direct investment, skills- biased technical change, competition from imports and quality upgrading to meet the demands of exporting on global markets have all boosted the demand for skilled In the informal sector, De Soto (2000) has famously argued that property- rights systems require reform to enable the informal sector to tap formal sources of financing, since untitled assets cannot be used as collateral for loans. Improved access to technology and training would also boost the productivity of workers in the informal sector. Making the formal labor market more flexible and reducing the burden of labor market regulations would also reduce the incentive to operate In the African context, it can involve the way business is done, production organized, a supply chain structured, financial resources distributed, or essential services provided. It is more a process than a product and stems from both traditional knowledge and the application of modern science and technology. At the grass-roots level, it often involves local communities, utilizing locally-owned knowledge to create innovations which can then be disseminated to other communities and transferred to other activities. Ideally, local development initiatives can engender learning processes that go well beyond the projects themselves, pointing the way to solutions of national or regional significance. They can act as exemplars that, if successful, may be scaled-up and replicated. They will then generate externalities which benefit many while addressing needs which cash-and capacity constrained governments have often found it dif icult to meet. Implementation of localized performance and development indicators may be sustained by providing incentives for LGU's proper compliance, as well as favorable development ratings. The existing indicators, which are externally generated, are in line with the principles of sustainable development as they are able to assess the state of development of local government units. In addition, the current indicators fall short of the LGUs' expectations on indicator usage since existing externally generated indicators still need to lessen cost implication, simplify the data requirements, and generate appropriate indicators. This was entirely presented in the paper of Rashel Yasmin Z. Pardo in June 2005 at the UP School of Urban and Regional Planning entitled, "Assessment of Local Government Unit Disparities and Localization of Performance and Development Indicators Towards Achievement of Sustainable Development". s i
From the above-mentioned literature and studies, the researcher thought that at given levels of development indicators, an analysis will be done to understand how the outcome of to be proposed economic programs can hopefully bring about progress and development to the five LGUs in different regions in the Philippines and at the same time, how such factor influences the business caM
The five municipalities from specific regions included in the study are the following: The Municipality of Nagtipunan, Quirino in Region II, The Municipality of Hermosa, Bataan in Region III, The Municipality of Catanauan, Quezon in Region IV, The Municipality of Catbalogan, Samar in Region VIII and The Municipality of Kapalong, Davao del Norte in Region XI. These municipalities were chosen from among other fifteen municipalities in the entire Philippines according to the characteristics and issues unique to each individual LGU, taking into account the varying capacities, limitations, and needs of the localities. The dynamic process involves the interaction among economic, social, and political factors wherein the result of such process is growth that is visible and tangible like the business establishments or factories, houses, crops, schools, hospitals, and other social and economic infrastructures. These were expected to be gathered from those municipalities to at least cover the factors of local development with commonality based on the secondary data that can be accessed and available to use in this study, and the analysis of these data are subsequently limited to the above- mentioned five municipalities. However, not all other programs developed by national government and other institutions are applicable to the varying characteristics of LGUs in the dif erent regions. The study only answered the two key problems stated in the statement of the problem. Correspondingly, findings, conclusions, and recommendations were derived after statistical analysis were done using the gathered data, and review of conceptual approaches and practices relevant to the study. This research attempted to look into the economic development indicators in the Local Government Units resulting in the design and formulation of proposed programs for these LGUs. The macroeconomic analyses to be made will also be reflected in the vision, goals, and targets of any local economic development project. Specifically, this research paper sought to answer the following problems:
1. What are the economic indicators reflected in the towns of the dif erent
regions in terms of: CKSC-Institutional Faculty Journal 1.1 Local and Type of Occupation 1.2 Employed Population 1.3 House Structure 1.4 Financial Institutions 1.5 Business Establishments 1.6 Farming facilities and equipment 1.7 Agricultural Productivity? iL .
2. What programs can be proposed to help bring about development and progress in the LGUs? Method The study employed descriptive research design in describing the situation
as it existed at the time of the study. The economic dimensions of development reflect the situation and characteristics of the LGUs through gathered documentary materials that are already existing and accessible. Secondary data from years 2006 to 2009 were taken from different LGUs from selected Regions, namely: Region II, Region III, Region IV, Region VIII, and Region XI. These were chosen according to the characteristics and issues, taking into account the varying capacities, limitations, and needs of their respective localities. Other data were taken from the government agencies like National Economic Development Authority (NEDA) and the National Statistics Office (NSO) that will give light to the relationship of variables contributing a minor or major development to the LGU in different regions across the country. This information was also apparently described in the literature on local government available in their respective websites and some municipal records that were directly gathered in different LGU's department in partnership with the provincial's NSOs, Schools, and Provincial and Local Health Offices. The data were tallied, coming up with the assets and capacities tabulated summary for further concentration and refinement of the economic dimensions.
In the analysis of the research data, Percentages were used to determine
the distribution of the respondent's profile. It shows the relationship between two magnitudes of the relationship of a part per hundred of its sample.
Ranking follows the items and are presented in tabular form whereby the
greatest number of item or variables in the questionnaire can be equated to the valuable item that renders informative facts representing the subject of the study. The largest frequency is ranked 1 and the next largest frequency ranks 2 and so on. Results and Discussions
Local and Type of Occupation

The goal of generating the kind of welfare that ensures a decent standard of living of the citizen is proportional and related to economic factors such as occupation, house structure, and to the sustainability of the operation of both agricultural and business establishments in a competitive environment. The s i
following economic factors were used in the creation of the possible economic Occupation is generally linked to the economic success of businesses. The question of which products and services are produced in a particular municipality has considerable impact on the quality of the local environment. It can be observed in Table 1 that farming has a huge number in terms of caM
type and occupational status of 27.86 percent in the respondent towns of different regions followed by professional employment which is 25.67 percent at large mainly in Region VIII and Region XI. Defining the status of certain localities is in the interest of issues on its physical structure that is emerging, as well as complex employment patterns. As the locality grows, this surrounding area changes in character to the extent that the location of such facilities and productive enterprises is building up in the midst of continuing intensive agriculture and variations in employment array CKSC-Institutional Faculty Journal

Employed Population
Table 2 shows the number of employed population in the different towns from selected regions with 55 percent comprising of male and 45 percent female as manifested through their productivity skills, professional skills, and livelihood development that provides opportunities for men and women acquiring gainful occupation and livelihood through practical skills development, basic business management skills and provision of capital assistance. With that, the total work force may be employed in consumer and service- oriented businesses, manufacturing firms, and cottage industries. However, the towns in Regions IV and XI have a great difference in the number of employed males over the females. This is an implication that some of its industries were underperformed by the female population that are supposed to stimulate local economic growth. House Structure
Wealth is characterized and perceived by good housing. The impact of this income measures on housing characteristic must be permanent and adequate enough to protect its inhabitants.

In Table 3, most of the houses in the towns from different regions are made of durable materials that are reflected in the kind of construction materials and their structure of either concrete or semi-concrete. However some of these houses are situated closely to the river or in crowded place, alongside the road or lowly farm s i
area, in which some of them maybe prone to fire or to flooding. The cost of housing is generally reflected by its single and concrete structure with 48.10 percent and 29.09 percent respectively enabling affordable and decent housing which is needed not to be literally or figuratively cheap. These structures of the houses of the respondents from dif erent regions can relate to how wealth can be characterized and perceived by good housing. The impact of this income measures on housing caM
characteristic must be permanent and adequate enough to protect its inhabitants. Financial Institutions
Financial Institutions can be functional and efficiently help the social and economic needs of the towns, meeting the demands of the society and stimulating the development and growth of the community. Table 4 shows that the major source of funds of the dif erent towns is mostly from cooperatives. A cooperative is organized by a group of society improving the social and economic conditions of the low earners. These are the small farmers, small fishermen, the factory workers, and the ordinary employees. Pawnshops and private lenders are next additional source of credit of most of the towns that are intended to small borrowers who are not qualified to obtain small loans from other financial institutions. CKSC-Institutional Faculty Journal

Business Establishments

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In Table 5, it can be generally recognized that the business establishments in the towns of selected regions are small to medium enterprises, comprising of variety of stores with 41.66 percent, restaurants, amusement, and bars with 11.35 percent, and 4.03 percent respectively, barber shops and parlors with 4.91 percent., This shows that most of the people living in a certain locality want to own a business. Some business establishments are engaged in manufacturing with 7.75 percent, dealership with 6.64 percent, and fish pen with 6.14 percent. The rest are more of service enterprises. However, there were only few market establishments which are considered one of the most important social infrastructures.

Farming Facilities and Equipment
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Table 6 shows how farming tends to be just one of the diverse survival strategies employed by many of the rural poor in the different towns in selected regions and the absence of these farming equipment and structures may cost loss of livelihood of the petople. The irrigation system also points to questions of efficiency in resource allocation and possible investment, into one asset area. Concentrating on few significant efforts and the adequacy of the use of other post harvest facilities such as hand tractors, water pumps, rice mill and corn/rice thresher may affect the promotion of productive activities. CKSC-Institutional Faculty Journal

Agricultural Productivity

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Table 7 shows that the primary agricultural products of the towns in different regions are rice, corn, banana, mango, variety of vegetables and other fruits, root crops, and coconut. Any surplus or deficiencies of these agricultural products are depending on the post-harvest facilities being used, the topography, and the availability of the agricultural lands intended solely for agricultural purposes. The competitiveness in the market of these agricultural crops also depends on the financial assistance extended to the farmers by the LGUs to sustain a continuing growth in the said industry Practical and Theoretical Implications

The structure of employment may be found significantly related to the
income of the people and the presence of various skills, encouraged by local businesses and small-scale agriculture that create employment. The proportional relation of the owned house to the materials and structure used, with a decent standard of living is perceived to be implemented to ensure the welfare of the people living in the area. The LGUs utilize a favorable business environment and skilled labor market by encouraging these economic units to be more competitive and innovative by simply handing out funds to enterprises, existing businesses, and even the smallest sectors of the town with the support of different financial institutions in the locality. Agriculture is sufficient for economic development of the municipality, and this finding implies that LGUs are required exploration of alternative drivers for development. The review of the indicators drawn together from five municipalities in selected regions helped the researcher to understand more clearly what economic programs could be proposed and the possible outcomes that it could bring in and s i
influence the business environment. The changes in the capacity of the businesses to achieve its objectives such as profitability and growth, productivity, and maintaining consumer satisfaction are all dependent and vary on the performance of both their internal environment and external environment. These are all taking place as part of functional variables that should also be the concern of the LGUs in planning their economic development programs because at the end, it's the latter caM
that will benefit in return It's good to say that Local Government Units serve as catalyst towards development of the entire Philippines. That's why their economic development programs must be linked and effectively articulated to their vision and goals. These programs should be all in line with their development objectives in which the activities will support the desired outcome based on their socio-economic goals. These results must be measured through constant monitoring and evaluation. The outcome of the data from the LGUs and its effect to business sectors will be the basis for improvement of its target. However, the LGUs must promote collective effort with these businesses that will contribute significantly to the welfare and economic development like an increase in local investment that will maximize the generation of employment and eventually would result in an increase in savings and resources as well as revenues to LGUs. The local governments can develop enterprises and channel business profits to social expenditures. The Matrix shows the proposed Economic Programs of the researcher that can be a source of reference in the assessment of the economic development indicators and their corresponding outcomes. The programs are composed of four economic development programs namely: (1) Occupational Services Program (2) House Structure Support Program (3) Financial Support Program and (4) Agricultural Support Program. The activities or strategies mentioned will hopefully help the LGUs in achieving their development objectives that will also complement CKSC-Institutional Faculty Journal .B.I
CKSC-Institutional Faculty Journal
REFERENCES
Case , Karle.; Fair, Ray C (2012). Principles of Economics . Pearson Education Inc.
Landa F. Jocano, Working with Filipinos: A Cross-Cultural Encounter (QuezonCity:
Punlad Publishing House, 1999), 24. International Herald Tribune, November 23, 1993. miL .
Mankiw, NG .( 2012). Macroeconomics New York: Worth Publishers.
Sicat,Gerardo (2012).Philippine Economic and Development Issues, Volume III
New Ed. Pasig City; Anvil Publishing. http://www.bsp.gov.ph/publications/speeches_archives.asp?id=228& r=2005>Center for Alternative Development Initiative. National Economic and Development Authority National Statistical Coordinati Philippine Department of Agricul Philippine Department of Healt CKSC-Institutional Faculty Journal

Source: http://college.cksc.edu.ph/files/Inquest%20Volume%201%20Issue%201/1_3.pdf