Shift-share analysis

<p>A shift-share analysis, used in <a href="/facts/Regional_science/XjfzT9c0">regional science</a>, <a href="/facts/Political_economy/P753k3It">political economy</a>, and <a href="/facts/Urban_studies/p1Asow4p">urban studies</a>, determines what portions of regional economic growth or decline can be attributed to national, economic <a href="/facts/Industry_(economics)/nlB2hvkF">industry</a>, and <a href="/facts/Regional/CdM1oaR3">regional</a> factors.  The analysis helps identify industries where a regional economy has <a href="/facts/Competitive_advantage/5q4oKvzW">competitive advantages</a> over the larger economy.  A shift-share analysis takes the change over time of an economic variable, such as <a href="/facts/Employment/pqEUAhNv">employment</a>, within industries of a regional economy, and divides that change into various components.  A traditional shift-share analysis splits regional changes into just three components, but other models have evolved that expand the decomposition into additional components.
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Shift-share analysis open-in-new

Shift-share analysis