Municipal Competitiveness Index (MCI)

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The purpose of the Kosovo Municipal Competitiveness Index (MCI) study is to measure the competitiveness of municipal governance in providing a favorable local business environment. This study was conducted by Riinvest Institute and the report of this study can be downloaded here.

The methodology used for constructing the index is based on the standardized methodology of Local Economic Governance Index (EGI) from Asia Foundation. The MCI is a construct of 8 standardized sub-indexes measuring key dimensions of the impact of local governance on the business environment. The study is based on primary data collected through the survey with 3350 firms in all of the 38 Kosovo municipalities employing a stratified randomized sample.

In the first graph, “Ranking by MCI” on the left side is presented Kosovo map with 38 municipalities and on the right side are presented the values ​​of sub-indexes for the respective municipality selected on the map. So through this graph you can see that the MCI is generated as a simple average of the values ​​of the 8 sub-indexes.

In the second chart “Ranking by MCI Sub-Indexes” you can see how the municipalities are ranked at the national level according to the value of the eight sub-indexes. If you hover the cursor over the name of the respective municipality in the first column of this graph, then in all the other columns the sub-indexes values ​​and the ranking position for the selected municipality in the respective index will be colored.

If municipality of Lipjan is selected, which is ranked first at the national level according to the MCI index, it can be noticed that the municipality of Lipjan is well ranked according to other sub-indexes as well; however, it can also be seen it that it has not been ranked very high on three out of eight sub-indexes, respectively the under the Sub-Index Time Costs ( is ranked 23th at national level), under sub-index Labor Force (14th at national level), and Barriers to entry (13th at national level).

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