http://dx.doi.org/10.1016/j.cya.2017.05.002
Paper research
Proposal of a model to measure competitiveness through
factor analysis
Propuesta de un
modelo de medición de la competitividad mediante análisis factorial
Juan José García Ochoa1
Juan de Dios León Lara1
José Pablo Nuño de la Parra2
1 Universidad de
Sonora, México
2 Universidad
Popular Autónoma del Estado de Puebla, México
Corresponding author: Juan José García Ochoa, email: jgarcia@navojoa.uson.mx
Abstract
This
article presents a proposal for a simultaneous competitiveness measurement
model for the three geographical levels: country, states, and municipalities.
For this, a multivariate factor analysis method is used to help identify five
factors, seven sub-factors, and thirty variables, which will be used for the
measurement and to present the results of an empirical study on eleven
entities: the country, the State of Sonora, and nine municipalities, which
represent 80% of the population and 80% of their TGP. The results indicate
that, in 2010, the municipality of Hermosillo was the most competitive.
Keywords: Competitiveness models, Competitiveness index,
Competitiveness determinants,
Competitiveness characterization.
JEL classification: J21, O18, R11.
Resumen
En este artículo se presenta una
propuesta de modelo para medir la competitividad de los tres niveles
geográficos simultáneamente: país, estados y municipios; utilizando para ello
un método multivariado de análisis factorial que ayuda a identificar a cinco
factores, siete subfactores y 30 variables, con las
que se miden y presentan los resultados de un estudio empírico sobre once
entidades: el país, el Estado de Sonora y nueve municipios que representan el
80% de la población y 80% de su PBT. Los resultados indican que el municipio de
Hermosillo fue el más competitivo, en 2010.
Palabras clave: Modelos de
competitividad, Índice de competitividad, Determinantes de la competitividad,
Caracterización de la competitividad.
Códigos JEL: J21, O18, R11.
Received: 26/03/2015
Accepted: 28/01/2016
Introduction
Since ancient times,
productivity has been a relevant topic in the economic development and social
wellbeing of countries, and has been studied since the classical theories of
absolute advantage, comparative advantage, the competitive advantage of the
nations, up to the widespread models that resolve some of the deficiencies of
these theories.
In this
article, a conceptual model is proposed. This model was empirically tested to
simultaneously measure competitiveness in the three geographical levels:
municipal, state, and national. The aim of this work is to contribute toward
furthering competitiveness in the regions.
Analytical framework of
competitiveness
Concept of competitiveness and its determinant factors
. The origins of the concept of
competitiveness go back to the 15th – 17th centuries, with the economic theory known as mercantilism . In this theory, the manner of
creating wealth for the country was through foreign trade, in which the
following rule was applied: the value of what is annually sold to foreigners
must always be greater than our consumption of their products. As a result,
mercantilism looked to foreign trade as a zero-sum game, where the wealth of a
country is obtained from the trade deficit of the other country ( Hidalgo Capitán, 1998 ). However, in Adam
Smith's classical theory of 1776 titled
“An inquiry into the nature and causes of the wealth of nations”, the author
criticizes the mercantilist point of view, which envisaged trade as a zero-sum
game ( Smith, 1937 ). In its place, Adam
Smith envisaged trade as a sum-sum game in which all the trade partners can
benefit with the lowest unitary costs, that is, based on an absolute advantage.
For his part, David Ricardo (1971) applies the following
rule: “ the technologically superior country
ought to specialize in the manufacture of that good over which it has absolute
advantage and the technologically inferior country ought to specialize in the
good over which it has the least absolute disadvantage ” ( Cho & Moon, 2013; Ramos Ramos,
2001 ). This rule was known as “ comparative
advantage” ( Cho & Moon, 2013;
Ramos Ramos, 2001 ). Although Ricardo's model
explains trade based on the productivity levels between nations, it does not
explain why these differences exist.
Neoclassical theory. Eli Heckscher (1949) and Bertil
Ohlin (1933) created the factor endowment theory .
They developed the model addressing the idea that all nations have a similar technology , but
said nations differ in their endowments to three production determinants (or
factors), these being: capital, work force, and natural resources (Jones, 2011 ). This means that in the
framework of the HO model, a country or region will tend to be a net exporter
of factor products and/or services that are “relatively abundant” in their
geography and a net importer of factor goods and/or services that are
“relatively scarce” ( Artal, Castillo, & Requena, 2006 ; Artal-Tur, Llano-Verduras, & Requena-Silvente, 2009 ; Juozapaviciene & Eizentas,
2010; Nyahoho, 2010 ). The modern theory based on the classical principles is
initially associated to Paul Krugman (1979) , and according to its
proponents the comparative advantage is measured through productivity, which is
in turn defined not only by the endowment of the three aforementioned factors,
but also by factors such as: investment in labor capabilities, specialized
infrastructure, supplier networks, technology watch, among other determinant
factors ( Travkina & Tvaronaviciené, 2010 ).
Michael
Porter (1990) , in his book “The
Competitive Advantage of Nations”, created the bases of The theory of
competitiveness, conceptualized as follows: The prosperity of a nation depends
on its competitiveness, which is based on the productivity with which it
produces goods and services. Macroeconomic policies, solid legal institutions,
and stable policies are necessary conditions, but are not enough to ensure a
prosperous economy. Competitiveness is based on the microeconomic bases of a
nation – the sophistication of the operations and strategies of a company and
the quality of the microeconomic environment of the businesses in which the
companies compete. Understanding the microeconomic bases of competitiveness is
vital for the national economic policy, ( Hergnyan, Gabrielyan,
& Makaryan, 2008 , p. 13) (Porter, 1990 ). In this context, productivity
is based on two factors: the quality of the microeconomic environment in which
businesses compete, referring to the physical factors of the diamond model
(where, among other factors, the three determinant factors of comparative
advantage can be identified) and the sophistication of the company, referring
to the technological capability for absorption, improvement, and innovation.
Geographical analysis level of the concept of competitiveness . From Porter's theory (1990), a debate emerges led
by Paul Krugman (1994) regarding the concept of competitiveness of the nations . First,
it is argued that at the company, industry or corporation level, the concept of
competitiveness is clear, but this is not the case at the national level.
Finally,
according to Krugman, the change in the standard of living of the citizens is
determined by domestic factors related to productivity (microeconomic factors),
though not due to productivity related to other competing countries, but rather
due to domestic productivity. Therefore, the term
“competitiveness ”
is understood as a poetic manner of saying productivity
, though this does not imply that in the context of international
competitiveness this term has any utility. In other words, the term “ competitiveness of nations” is incorrect (Krugman, 1994).
Lombana and Rozas Gutiérrez (2009) tackle the definition of the
concept of competitiveness, addressing three levels of analysis: coincidences
were found at the micro and meso levels; however, at
the macro level there is reference to the economist Paul Krugman, who
criticizes the use of the concept of competitiveness at the national level. To
overcome this debate, the authors propose that instead of referring to the “ competitiveness of nations ” (between nations), it would be
more convenient to use the term “ competitive
environment of the nation ” (domestic to the nation). Therefore, for
these authors there is still no consensus on the concept of competitiveness,
however, they argue that it could be unified into a single concept that encompasses
the two theories—classic and modern—as a binding definition of competitiveness.
In this sense, the authors express that “one must not choose between the two
theories, as they are not mutually exclusive nor explicitly separable”. Thus,
it could be argued that it is inappropriate to present the competitive
advantage as an alternative (substitute) to the comparative advantage. The two
theories need to be adequately seen as complements rather than competitors in
the making of trade and industrial policies ( Lombana & Rozas
Gutiérrez, 2009 ).
Romo Murillo and Musik (2005) also tackle the concept of
competitiveness by addressing three levels of analysis: at the micro (or local)
level the analysis unit are companies, at the meso
(regional or state) level the analysis unit are the industries, the clusters,
and the sectors, and at the macro (national and international) level the
analysis unit is the country or region of a group of countries (intra-national
competitiveness). They found that there is consensus in the definition of
“competitiveness” applied to nations by virtually all the authors, whether or
not they are classical or neoclassical economists or from business schools,
when it relates to the productivity growth rate of the country (but not with
the productivity growth rate with regard to other countries, which lead to
present competitiveness as a zero-sum game) ( Romo Murillo & Musik, 2005).
Michael
Porter (1990) , a pioneer of the
competitiveness theory, suggests that competitiveness ought to be measured
primarily through productivity by stating that: “ The prosperity of a nation depends on its
competitiveness, which is based on productivity …”. In this context, the
best theoretical approximation on competitiveness is productivity, or rather,
as stated by professor Paul Krugman (1994) that competitiveness is
a synonym of productivity.
One of
the strongest criticism of Porter's model (1990) (PM) comes from Rugman (1991), Rugman
and D’Cruz (1993), Moon,
Rugman, and Verbeke (1998) , and Dunning (2003) due to the fact that it focuses
only on the country of origin, that is, the geographical scope of multinational
(MNC) and global (GC) corporations and the role of the government as an
endogenous factor in his model were not considered. As a result of these
omissions, small countries with great exporting activity could not be explained
with his model. To address these critiques, the Generalized Double Diamond
(GDD) model is developed, which explains the competitiveness of a nation
through the analysis of two diamonds: one related to the micro or local
environment and the other to the international macro environment, in which the
MNC and GC are included, as well as the government. On the other hand, Cho (1994) and Cho and Moon (2013) identified the lack of two factors of national
competitiveness in Porter's model (1990), which are: physical and human
factors. Among the physical factors, four endogenous factors from Porter's
model (1990) are included and within the human factor, the following four
sub-factors are listed: workers, professionals, entrepreneurs, politicians and
bureaucrats. Finally, randomness is included as an endogenous factor. Thus, the
Nine-Factor Model (NFM) was developed. Consequently, Cho, Moon and Kim (2006,
2007, 2008) added two categories for the scope of the geographical level: the
domestic and the international context. With this adaptation to the model, the
missing factors of the three models are covered: the PM, the MNC, and the GDD,
thus generating the proposal of a Model called the Dual Double Diamond (DDD),
which includes the aforementioned ( Castro-Gonzáles, Peña-Vinces,
Ruiz-Torres, & Sosa, 2013 ; Cho,
Moon, & Kim, 2009).
From
the classic and modern economic theory, other definitions and models which are
applicable to the international, national, state and municipal levels have been
derived. At the global level, the most well-known are the Global Competitiveness
Report, generated by the World Economic Forum; the World Competitiveness
Yearbook, generated by the International Institute for Management Development (
Cho & Moon, 2005; Cho &
Moon, 2013; IMD, 2014; Lall, 2001; Ramos Ramos, 2001; WEF, 2014-2015 ); and the DDD model,
generated in Seoul, South Korea. At a national and Mexican entities level, the
two most important models are: the one by the Mexican Institute for
Competitiveness A.C. (IMCO-Estatal), and the one by
the Graduate School in Public Administration and Public Policy (EGAP, for its
acronym in Spanish) ( Benzaquen, del Carpio, Zegarra, & Valdivia,
2010 ; EGAP, 2010; IMCO, 2014 ). And at the
disaggregation level of the municipalities of the Mexican states there is the
model of the IMCO-Urbano (2007), CONAPO
(2010), the work by Bracamonte Sierra (2011), and the work by Quijano Vega (2007) ( Bracamonte Sierra, 2011;
CONAPO, 2010; IMCO, 2007; Quijano Vega, 2007 ).
This
study derives mainly from the conceptual approach carried out by Cho and Moon (2013) , and the measurement methodology
of OECD and JRC (2008), and is also supported
by WEF (2014-2015), EGAP (2010), IMCO-Estatal (2014) , for the determination of the
competitiveness variables at the geographical level of the country, the states
and the municipalities. Finally, considering that some of these models were
adapted to generate composite indicators of competitiveness or that are related
to it at a state (or municipal) geographical scale, derived from the
methodologies that were originally designed to analyze countries. However, in
the previously mentioned methodologies applied to both the national and state context,
there is the deficiency of not contemplating the three geographical levels
(municipality, state, and country) in a single model. In this sense, a
contribution is made to address this existing blank in the research regarding
competitiveness that relates to the national, state and municipal geographical
scope and, on the other hand, in measuring competitiveness through the
multivariate technique of the factor analysis.
Considering
the previous contextual framework, competitiveness is defined and measured in
this work as the set of three large categories related to the economic, human
and physical aspects of the micro, meso and macro
environment that determine the level of productivity sustained in the scope of
the geographical regions (or entities). Once the concept of competitiveness
that guides the starting point of this investigation has been defined, the
proposal of a competitiveness model at the three levels (CM3L) is established
as the central objective; this through the disaggregation of these three
categories into their determinant factors, among which: the economic factor
includes economic performance; the human factor includes the healthy workforce
that is trained with basic education, the human capital that is trained in
universities, postgraduate courses and that participates as professionals in
the production systems, the people that generate wealth from the knowledge that
they are specialists and researchers, and the people that participate as
politicians and bureaucrats in the institutions; and the physical factor
includes the performance of the market, infrastructures and the ICTs
(information and communication technologies). Based on this, the following
working hypothesis was posed:
To
prove that competitiveness at the three geographical levels (country, state and
municipalities) is influenced by the determinant factors of competitiveness
(economic performance, labor market performance, infrastructure and ICTs, basic
education and healthcare, qualified human capital, and knowledge based economy),
as these determinant factors concentrate the main identified variables. And
with this structural interrelation it is possible to create a competitiveness
composite indicator that measures said entities.
Methodology
Research design . The type of study was of a
quasi-experimental design of a transectional
classification, and given the nature of the relation between the interdependent
variables with the obtained response variable, it was also considered a complex
correlational-causal research design ( Hernández
Sampieri, Fernández Collado, & Baptista Lucio,
2010 , p.
71–75).
Object of study and sample selection . The entities that are the object of study
correspond to nine municipalities, which are part of the State of Sonora and to
which they are contrasted, and are then in turn contrasted with those at the
country level. The sample taken from these nine municipalities that represent
the state, out of a total of 72, were selected based on two criteria ( Garza,
2010; IMCO, 2007 ): (1) That they concentrate 80% of the
state population, and (2) That they concentrate 80% of the total gross
production (TGP) of the state. Table
1
contains the noted information.
Source:
Own elaboration based on the (Statistic and geographical yearbook of Sonora, INEGI, 2013).
Data: the instrument, sources of secondary information, and study variables . A competitiveness conceptual model was
designed to characterize the entities that are the object of study ( Fig.
1 , of
the results section) based on the review of the literature and addressing
consistency with the definition and conceptual framework. The main problems
faced in creating a model are: the lack of disaggregated information available
at the municipal level, for it to be in accordance with the theoretical
framework, the credibility of the information, and its availability to the
public. Considering these challenges, the construction of the CM3L benefits
from the databanks of the INEGI and other official sources. The data matrix
comprised of 6 factors, 8 sub-factors, and 35 criteria utilized to evaluate the
11 entities for the 2010 analysis period are shown in the annex of Tables
A1, A2 and A3.
Model . The factor analysis model that describes
the covariances or correlations of a set of
observable variables y 1, y 2, …, y p in terms of a reduced number of latent,
non-observable common factors is presented in its developed form as a system of
linear equations in (1) (
OECD & JRC, 2008; Peña, 2002; Timm, 2002 ).
(1)
where Y i represents the observed
variables obtained from the databases. However, by standardizing them they
would have a median of zero and a unitary variance for all i = 1, 2, …, p ; the λ11,λ12,…,λpk are the regression
coefficients. In this technique, they are known as the weights or loads of the
factors; f1,f2,…,fk are the
latent common factors or the non-observable latent variables being researched,
each one with a median of zero and unitary variance; finally, the residuals ei are the non-observed disturbances of the unique or
specific factors. The model is limited to working with reason or interval
variables, making sure that the variables have the same direction.
Thus, each observation or data regarding
the median is represented in two parts—the common and the specific—represented
by ci and ei, respectively. The factor analysis model
(1) is used to investigate the non-observable
common parts of data Yi, expressed for the i th variable observed or datum with Eq. (2).
(2)
where ci are the effects
observed as a result of the relation between the λi1,λi2,…,λik coefficients and the
latent common k factors.
Regarding the variance of the data of
model (1) , it could be divided into common and
unique factors, as can be observed in Eq. (3).
(3)
where var(Yi) is the variance of the random Yi observations; the
variance of ci refers to the common variance or communality being researched;
and the variance of ei is the sole or specific
variance. The previous equation could also be represented as:
(4)
where the first term is
the sum of the effects of the factors and the second is the effect of the
disturbance. Calling for the sum of the effects of the factors as:
(5)
where hi2 is the common
variance or communality.
Methodology of the confirmatory factor analysis . There are various alternatives to dealing
with the model provided in (1) , however, the most common is related to
the method of extraction by main components for the creation of composite
indicators derived from conceptual models ( OECD
& JRC, 2008 ).
The general methodology for the analysis is the following: (1) Standardize the
original variables, formally done with a transformation of the standard normal
distribution with a median of zero and a variance of one through equation 6,
due to these being expressed in different units of measurement ( Espejo Benítez &
Hidalgo Pérez, 2011; Gutiérrez Pulido & Gama Hernández, 2010; OECD &
JRC, 2008 ).
(6)
where Zij is the standardized variable j with a median of zero
and a variance of one of the observation entity i; Yij represents each
variable j of the observation entity i ; Yj represents the
arithmetic median of the values of variable j ; Sj
represents the standard deviation of variable j.
(2) Obtain the variances of the
standardized original variables (Yij) with a median
of zero and a variance of one, the new variable obtained from this
transformation is represented by (Zij), which is
known as the standardized correlation matrix1 ( De la Garza García, Morales
Serrano, & González Cavazos, 2013 ); (3) Through
Bartlett's test of sphericity contrast and the
Kaiser-Meyer-Olkin measure of sampling adequacy, the
degree of general correlation, the partial correlation between variables, and
the advantage of the factor analysis were determined for the proposed analysis.
With Eq. (7) , the values of
Bartlett's ji squared were obtained and with Eq. (8) , the general
measurement of sampling adequacy ( MSA g ) is obtained, which
could be extended to the individual variables ( MSA j ) using Eq. (9) to exclude those found
to be unacceptable (also identified by values below 0.5 in the main diagonal of
the anti-image correlation matrix) ( De la Garza García et al.,
2013 ; Hair, Anderson,
Tatham, & Black, 1999 ).
(7)
where Xc2 is the
calculated ji squared; n is the number of data; m is the number of
variables; |R| is the determinant of the correlation matrix, which ranges
between 0 and 1, that is 0≤|R|≤1, a value of 1 indicates that it is an identity
matrix.2
where the MSA g index is the measure of
adequacy of the general sampling delimited between 0 and 1, the acceptable
being MSA g ≥0.5; and rij(p)2 is the partial correlation coefficient between (Zi,Zj) eliminating the influence
of the rest of the variables.
(9)
where the MSA j index is the measure of individual
adequacy delimited between 0 and 1, the acceptable being MSA j ≥0.5; and rij(p)2 is the partial correlation coefficient between (Zi,Zj) eliminating the influence
of the rest of the variables.
(4) The individual values and vectors are calculated using Eqs. (10) and (11). Eq. (11) originates the orthogonal matrix for the transformation, renamed Lˆ ( De la Garza García et al., 2013; Peña, 2002; Pla, 1986; Timm, 2002 ).
(10)
where R is the standardized
correlation matrix with a ( p
× p ) dimension; λ is a scalar whose lambda values are identified, and are denominated
individual values (eigenvalues); I is the identity matrix;
L is a non-zero, dimension vector ( p × 1) denominated an
individual value (eigenvector).
(5) Determine the optimal number of factors, addressing the following three criteria: (a) scree test which is a sedimentation graphic between the number of factors and the eigenvalues obtained from Eq. (10) . A variant or option for this criterion is the use of the eigenvalue ≥ 1; (b) multiple linear correlation percentage of each variable with the factors of communality ≥ 60%, according to Hair et al. (1999 , p. 93); (c) the accumulated explained variance percentage (PVEA) ≥ 60%, through Eq. (12) ( De la Garza García et al., 2013; Espejo Benítez & Hidalgo Pérez, 2011; Hair et al., 1999; OECD & JRC, 2008; Timm, 2002 ).
(12)
where PVE i is the percentage of the
individual explained variation of factor i th;
λ1 is the eigenvalue of
the i th
observation; VT is the total variation (or number of variables).
(6)
Test the proposed conceptual model.
(7)
Carry out an orthogonal rotation of the factor matrix following the varimax rotation method3 that simplifies the
visual identification of variable groups, through the loads of the determined
optimal factors ( De la Garza García et al., 2013; Hair et al., 1999 ).
(8) Construction of a competitiveness or codification
translator for the CM3L .
A joint interpretation of the first two components is carried out based on the
loads of the eigenvector of the tested conceptual model, that is, with the interpretation
of the first two components that ensure at least a 60% explained variance
according to the third criterion of those mentioned in the section on the
optimal selection of factors, thus, choosing the loads of the factors
(eigenvectors) that multiply each of the standardized variables with Eq. (6) of each entity (OECD & JRC, 2008).
The
construction of both the individual ranking of the common determinant factors
and the global ranking is done as previously indicated in this step. However,
for the easy interpretation of these indexes, equation 13 is used to order the
codified data into a zero to one-hundred scale ( OECD & JRC, 2008).
(13)
where Iij is the value of indicator I in the 0–100 scale for
entity j; INij is the value of indicator I for entity j ; minj(Xi)
represents the lowest indicator from entity j ; and maxj(xi) represents the largest indicator of entity j.
Results
As previously mentioned,
based on the empirical evidence of related investigations, and with the support
of the statistic program SPSS 17.0 and Minitab 17.0, it was possible to
identify the reduction of the 35 initial variables into 6 common factors that
provide a 93.675% total explained variance, utilizing in said analysis the
criterion of eigenvalue4 ≥ 1 in its standardized variables, as shown in Table 2 . This represents both
the non-rotated components matrix as well as the rotated components matrix. The
six common factors previously mentioned were also used as support to elaborate Tables A1, A2 and A3.
To explain the existing
relation between the variables of the determinant factors and the
competitiveness of the entities, that is, the existence of the degree of
interrelation between the groups of variables, it is necessary to prove the
degree of correlation of the defined variables with each common factor. Bartlett's test of sphericity
and the adequacy measurement of the Kaiser-Meyer-Olkin
sample provide the degree of adequacy of the factor analysis.
Table 3 shows the results,
demonstrating that both tests determine that the factor analysis is adequate to
study the interrelations between the variables of each common factor, except
for the labor market performance determinant, due to the fact that its level of
significance is too low (0.747). This is the result of proving the absence of
significant correlations between the variables defined in this factor. In other
words, it proves the null hypothesis that states that the determinant of the
correlation matrix adjusts to the identity. Therefore, the labor market
performance determinant should not be used in the factor analysis. On the other
hand, the knowledge-based economy determinant was accepted with 10 degrees of
freedom, due to having delimited one of the variables (candidates) for having a
MSA j value < 0.5, meaning
it presented a rather low partial correlation index with regard to the group of
variables in said determinant.
From the system of Eq. (1) and Eqs.
(10) and (11) , the
eigenvectors corresponding to the weights of the standardized original
variables used to estimate each individual latent variable (or individual
indicator) are obtained; and with the ensemble of these latent variables, the
eigenvectors are obtained to estimate the global latent variable. The
summarized results are shown in Table
A4
for the set of said variables.
The
above results demonstrate the hypothesis proposed in this work regarding the
sustainment of the design of the CM3L based on the review of the literature,
validity and the statistic reliability that are summarized in Tables 2, 3 and Table A4. Furthermore, Figure
1
shows the CM3L model, which presents the interrelations between the variables
of the determinant factors and the competitiveness of the entities. The data in
parentheses refer to the accumulated total explained variation of the first
common factor for each determinant, calculated using Eq. (12) from Table A4 ; the others refer to the datum
that relates to the multiple linear correlation coefficient of each determinant
in the ensemble of the two factors, which explain 87.4% of the accumulated VT
calculated with Eq. (5); the other datum refers
to the p value in the Bartlett test,
which is shown in Table 3.
Even
though the market performance determinant was not considered in the analysis,
as no significant correlation was found between the variables considered in the
study, this does not mean that said determinant is not important, given that
there are other variables that could be considered, such as: total exports,
total imports, incoming foreign direct investment (FDI), outgoing FDI,
percentage share in global FDI arrivals—with these being the variables most
cited by the main authors such as Porter
(2008) , among others. However, the data of these variables are not available
at the disaggregation level of the municipalities and, therefore, it was not
possible to evaluate their impact in the conceptual model.
To
characterize the competitiveness of the entities, we proceeded to step eight of
the methodology. Thus, the ranking translated to the corresponding position of
each of the eleven entities is shown in both Table
4
and Fig. 2.
As pointed out by Garza (2010) , it is worth noting that the
achieved competitiveness ranking of the entities is very similar if only the
economic performance determinant is taken into consideration. This is due to this
determinant presenting a high composite (or global) multiple linear correlation
or Pearson correlation. However, in the case of this study, the interpretation
of the global ranking is more complete as it includes the information of the
set of competitiveness determinant factors.
Conclusions
Although the concept of
competitiveness is very complex, there is consensus regarding said term when it
is used at the micro and meso levels. However, at the
macro level the concept lends itself to debate by referring to the
“competitiveness of nations”. Nevertheless, as previously mentioned, there is
consensus between the classical and business schools when the concept relates
to the internal productivity of the country, but not with respect to other
countries. In this manner, this CM3L model has been developed, among other
methods, as a tool for the State policy-makers, decision-makers of the business
sector, and academics and researchers interested in measuring, knowing, or
explaining the geographical competitiveness of the country, the state, or the
municipalities, and to identify what factors need improvement and what
variables of the determinant factors have contributed the most to the success
of its competitiveness.
The
CM3L conceptual model was developed by establishing causality through
theoretical justification in other models. With the support of empirical data,
6 competitiveness performance determinants were identified, which were in turn
appointed as factors: (1) economic performance, (2) market performance, (3)
infrastructure and ICTs, (4) basic education and healthcare, (5) qualified
human capital, and (6) knowledge based economy. Furthermore, for each of these
factors, sub-factors and variables were identified. These measure the six
determinant factors of competitiveness. The sub-factors comprise a second level
and the variables a third level of disaggregation, both for the information
inputs as well as for their analysis.
The
empirical application of the CM3L model shows that upon verification, the
hypothesis for 5 determinant factors that influence on the competitiveness of
the entities was proven. These are: economic performance, infrastructure and
ICTs, basic education and healthcare, qualified human capital, and knowledge
based economy. Regarding the labor market performance determinant, it was found
that it was not significant due to the variables not being sufficiently
correlated, which means that said variables have had a plausible relation or
rather that in this type of analysis where the perspective of time (more than a
year) cannot be distinguished; with said variables, causality cannot be proven.
This does not mean that this factor ought to be eliminated from the conceptual
model, but that this dimension needs to be proven using other disaggregated
variables at the municipal level including the perspective of time.
The
results of the CM3L empirical model shown in Figure
2
, illustrate that the municipality of Hermosillo is the most competitive in the
country, in the State of Sonora, and among the rest of the municipalities. On
the other hand, it was found that the municipality of Cajeme,
the State of Sonora, and the whole country are at the same medium stage of
competitive development; whereas the municipalities of Guaymas,
Nogales, Navojoa, Puerto Peñasco,
Caborca, San Luis Río Colorado and Agua Prieta are at a low competitiveness level. The findings
coincide with the results reported by the IMCO in 2010, in that they first
identify Hermosillo as having the highest competitiveness (in the adequate
classification); however, the results diverge when they identify Obregón city (or Cajeme) and Guaymas at the same stage of development, located above the
competitiveness average, and the rest of the municipalities are not taken into
consideration in their analysis.
Finally,
a second stage of this investigation emerges as a conclusive result of this
first work. The aforementioned stage corresponds to the identification of
competitiveness in the 72 municipalities of the State of Sonora, making said
identification comparable in time.
Annexes
Name
given to the determinant or common factor:
A. Economic performance.
B. Infrastructure and
ICTs.
C. Basic education and
healthcare.
D. Qualified human
capital.
E. Knowledge based
economy.
Extraction method: Main
components analysis.
Source: Own elaboration.
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☆ We thank the editor, the subcommittee of the editorial
board, and the two anonymous judges. Special thanks to Dr. Miguel Ángel Vázquez Ruiz, Dr. Juan Enrique Huerta Wong, and M.I.
Carlos Anaya Heredia for their valuable feedback on the rough draft of this
article.
Peer review under the
responsibility of Universidad Nacional Autónoma de
México.
Notes.
1 A standardized correlation matrix is comprised in its
main diagonal by numbers one and will be symmetrical ( De la Garza García et al.,
2013; Pla, 1986 ).
2 An identity matrix includes ones in its main diagonal and
zeros outside of it, which indicates that there is no correlation between the
variables, therefore, the analysis doesn’t need to be carried out ( De la Garza García et al.,
2013; Timm, 2002 ).
3 To apply the varimax rotation
method a B = AL
matrix must be calculated, where: A is
the factor matrix and L is the
orthogonal matrix to be calculated; where Lˆ*LˆT=I ( Becerril Torres, Alvarez Ayuso, Del Moral Barrera, & Vergara González, 2009 ).
4 The term eigenvalue refers to the quantity of
information that each of the factors encompasses from the set of variables,
that is, it is the total explained variance of each common factor ( De la Garza García et al.,
2013 ).
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Universidad Nacional Autónoma de México, Facultad de Contaduría y
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