Incorporating Sectoral Structure into Shift–Share Analysis

Abstract

The objective of this article is to present a new way to incorporate the sectoral dimension within the components of regional growth provided by the traditional shift-share analysis. The new methodology elaborates the way that the dynamics of a specific sector in a region are influenced by the performance of other sectors, the latter decomposed between national, structural, and differential effects. To illustrate this extension of the shift-share method, an application is provided using data for the Spanish region of Extremadura for the period 1990-2004. The results highlight how these new components can shed new insights into the analysis of sectoral and regional economic growth processes.

Economic crisis and regional resilience: Evidence from Greece

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An analysis of employment patterns of domestic migrants and immigrants in a Rustbelt city: A study of Buffalo‐Niagara Falls

“…Next, the differential shift of Shift Share Analysis is used (see Equation (2)) (Haynes & Dinc, 1997;Márquez et al, 2009;Primont & Domazlicky, 2008), where local t is employment in a specific I-O group at time t. US t denotes employment in the same I-O group at time t for the national economy. The difference between the ratios time t (2006-2010) and time t-1 (2000), represents the growth rate of the local economy compared to the national growth rate of the specified I-O group.…”

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“…Now it is not only widely applied in regional economics and urban economics field but has also become one of the effective statistical methods for studying regional economic growth (Chiang, 2012;Márquez, Ramajo, & Hewings, 2009;Mayor, Matías, & López, 2008;He, 2012).…”