**METHODOLOGY**

**A. Description**

The different data that are gathered to form the index are unique and __depend on its nature and type__. In
order to compute for the index and rank the different components, there is a need to understand the
weighing of each component and the manner of computing each indicator.

**B. Weights**

Similar to other indices, the competitiveness index ranking has a total index value of 100, representing a
fully competitive local unit. The index is composed of three core components with each component
representing about 33.3% of index value, to wit:

- Economic Dynamism 33.3%
- Governance Efficiency 33.3%
- Infrastructure
33.3%

Ideally, the number of indicators to be gathered should be equal for each of the three (3) components of
the index. However, as each component has different dimensions and aspects to consider, the weights
need to be adjusted per indicator. Originally, there were 10 indicators per core component making each
indicator represent 3.3%. Even if the number of indicators per component are lower or higher than 10,
the core component will still retain 33.3% weight. What will change are the weights within the core
component. In this version of the index, many indicators were computed from the composite values of
two or more sub-indicators. For instance, health infrastructure is composed of public and private data
for facilities and rooms available. Thus, there are two components of a single indicator on health
infrastructure. The two sub-indicators are ranked separately but are added back as a composite
indicator.

**C. Standardizing the Computations**

To standardize the computations, we follow the process of computing the components of the human
development index (HDI) using our standard formula or Formula 1

**D. Provincial Ranking**

**Qualification:**

There are two parameters to qualify for the ranking of the "Most Competitive Province" detailed as follows:

- The combined population of all participating LGUs under the province should constitute
at
**least 60% of the TOTAL PROVINCIAL POPULATION.**
- The covered participating localities must be
**90% of the TOTAL NUMBER OF LGUs UNDER A PROVINCE.**

**Scoring:**
For those provinces which qualify given the above conditions, the scoring is calculated as the population and income weighted average
of the LGUs covered. Scores of the LGUs covered are then aggregated.

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