2 OBJECTIVES OF THE STUDY
The main objective of the study is to determine the
efficiency of the local government units of the four
provinces and eight cities of Northwestern
Philippines along the Millennium Development
Goals.
Specifically, based on the different indicators, this
study sought answers to the following questions:
1. What is the efficiency of the local government
units based on the DEA analysis?
2. What are the peer groups and weights of the
DMUs?
3. What are the virtual inputs/outputs or
improvements of the provinces/cities to be in the
efficient frontier?
4. What are the input and output slacks needed in the
different indicators?
5. Based on the findings, what are the best practices
to be considered by the efficient DMUs?
3 METHODOLOGY
This study utilized the descriptive evaluative research
design. It is also a documentary analysis as it
analyzed the efficiency of the four (4) provinces and
eight (8) cities of Northwestern Philippines in terms
of the different MDG indicators.
The researcher considered several entities for
evaluation using a non-parametric approach called
Data Envelopment Analysis (DEA) in Decision
Making Units (DMUs) to evaluate and compare the
efficiency of the local government units.
It employed the Input Oriented Multi - Stage Data
Envelopment Analysis (DEA) Constant Returns-to-
Scale (CRS) Model to find out the most favorable
weight and the efficiency of a DMU equivalent to
improving the efficiency of this DMU by minimizing
its inputs while producing at least the observed output
levels.
Furthermore, this study also utilized Time Series
Analysis in terms of their efficiency scores for the
calendar years 2012-2015.
4 SUMMARY OF FINDINGS
The following are the findings of the study:
1. The efficiency of the provinces/cities is as
follows:
a. As to the eradication of extreme poverty and
hunger, only Ilocos Sur was found to be
inefficient.
b. Under achieving universal primary education,
only San Fernando City was found to be fully
efficient.
c. As to the promotion of gender equality and
empowerment of women, only five (5) cities
namely Alaminos City, Laoag City, San
Fernando City, Urdaneta City and Vigan City
were found to be fully efficient.
d. In terms of reduction of child mortality, only
Ilocos Sur was inefficient.
e. As to the improvement of maternal health,
only the province of Ilocos Sur was found to
be fully efficient.
f. Under the goal - to combat HIV/AIDS,
malaria, and other diseases, all the DMUs are
fully efficient.
g. In terms of ensuring environmental
sustainability, only two (2) provinces were
found to be fully efficient: Ilocos Sur and
Pangasinan.
h. As to global partnership for development,
Ilocos Norte and La Union, Ilocos Sur and
Pangasinan, were fully efficient and weak
efficient respectively.
2. The efficient peers and weights of the inefficient
DMUs are:
a. As to Goal #1- To eradicate extreme poverty
and hunger: Ilocos Norte, La Union and
Pangasinan.
b. Under Goal #2 - To achieve universal primary
education: only San Fernando City was found
to be fully is the efficient peer and weight.
c. As to Goal #3 – To promote gender equality
and empower women: five (5) cities namely
Alaminos City, Laoag City, San Fernando
City, Urdaneta City and Vigan City are the
efficient peers and weights.
d. In terms of Goal #4 – To reduce child
mortality: Ilocos Norte, La Union and
Pangasinan are the efficient peers and weights
of Ilocos Sur.
e. As to Goal #5 – To improve maternal health:
only the province of Ilocos Sur is the efficient
peer and weight of the other three (3)
provinces.
f. Under Goal #6 – To combat HIV/AIDS,
malaria and other diseases: all the DMUs are
fully efficient so they don’t need an efficient
peer and weight.
g. In terms of Goal #7 – To ensure environmental
sustainability: Ilocos Sur and Pangasinan