This paper aims to investigate the relationship between economic and demographic performance of local governments, using the Tiebout theorem as a framework. The theorem posits that individuals will relocate to jurisdictions that provide public goods and services that align with their preferences. Therefore, local governments that offer a diverse range of public goods and services can attract a wider range of residents, promoting economic growth. Demographic factors, such as age, income, and education levels, are also likely to influence economic and demographic performance. We argue that in less developed and emerging economies, residents prioritize job creation and appropriate wages over other factors. Thus, local governments in these economies should prioritize job creation to attract and retain residents and stimulate economic growth. Our study offers valuable insights for policymakers seeking to enhance economic and demographic performance in their local governments.