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A New Shift‐Share Method
Author(s) -
Artige Lionel,
Neuss Leif
Publication year - 2014
Publication title -
growth and change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.657
H-Index - 55
eISSN - 1468-2257
pISSN - 0017-4815
DOI - 10.1111/grow.12065
Subject(s) - shift share analysis , decomposition , econometrics , criticism , market share , variable (mathematics) , subject (documents) , computer science , economics , mathematics , macroeconomics , political science , law , chemistry , mathematical analysis , finance , organic chemistry , library science
Shift‐share analysis is a decomposition technique widely used in regional studies to quantify an industry‐mix effect and a competitive effect on the growth of regional employment (or any other relevant variable) relative to the national average. This technique has always been subject to criticism for its lack of theoretical basis. This paper presents a critical assessment of the methods suggested by D unn and E steban‐ M arquillas and proposes a new shift‐share method, which separates out the two effects unambiguously. By way of illustration, we provide an application to manufacturing employment in the B elgian provinces between 1995 and 2007.