2014
DOI: 10.1111/grow.12065
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A New Shift‐Share Method

Abstract: 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 Dunn and Esteban‐Marquillas and proposes a new shift‐share method, which separates out the two effects unambiguo… Show more

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Cited by 48 publications
(37 citation statements)
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“…Martin et al [23], for instance, run a fine-tuned 25-sector disaggregation. Artige and van Neuss [56] in their analysis of the Belgian manufacture used data from 14 sub-sectors. In this study, we propose to consider 11 economic sectors, resulting from the NACE codes listed in Appendix A.…”
Section: The Third Step: the Quantification Of The Sectoral Influencementioning
confidence: 99%
“…Martin et al [23], for instance, run a fine-tuned 25-sector disaggregation. Artige and van Neuss [56] in their analysis of the Belgian manufacture used data from 14 sub-sectors. In this study, we propose to consider 11 economic sectors, resulting from the NACE codes listed in Appendix A.…”
Section: The Third Step: the Quantification Of The Sectoral Influencementioning
confidence: 99%
“…In its traditional form, the three-factor shift-share analysis, proposed by Daniel Creamer (1940), was later formalized by Edgar S. Dunn (1960), and it continues to be widely used to identify the role of regional and national effects in shaping current economic trends (Artige & Neuss, 2015).…”
Section: Methodsmentioning
confidence: 99%
“…A recent embellishment of the method, proposed by Artige and Van Neuss (2014), is implemented herein. According to its proponents, this method overcomes weaknesses in previous versions (e.g., the Esteban-Marquilles method) and the archetypal shift-share analysis version (Keil, 1992;Fotopoulos et al, 2010).…”
Section: Definitions and Methodological Approachmentioning
confidence: 99%
“…When LQ values are (much) higher than 1, the industry is over-represented in the region and vice versa. 6 In brief, shift-share analysis decomposes an employment increase (or decline) within a time period into three distinct components: (i) the National Share (NS), which is the growth that would have supposedly been witnessed in each sector of the region if the rate of employment change was equal to the national rate; (ii) the Industrial Mix (IM) or structural effect, which accounts for the impact of the sectoral/economic structure of each region on the employment change differential between that region and country; and finally, (iii) the Regional Share (RS) or competitive effect, which calculates the impact of the relatively better (or worse) performance of a sector within a region when compared to that sector's employment growth on a national basis (Artige and Van Neuss, 2014). 7 The latter findings are verified by additional sources provided by Industry…”
Section: Definitions and Methodological Approachmentioning
confidence: 99%