A New Shift-Share Method

Growth and Change, 2014, Vol. 45 (4)

20 Pages Posted: 3 Aug 2012 Last revised: 7 Feb 2023

See all articles by Lionel Artige

Lionel Artige

University of Liège

Leif van Neuss

University of Liège - HEC Management School

Date Written: December 1, 2014

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 (1960) and by Esteban-Marquillas (1972) 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 Belgian provinces between 1995 and 2007.

Keywords: Economic structure, regional economics, shift-share, Belgian manufacturing employment

JEL Classification: R10, R11, R12, R58

Suggested Citation

Artige, Lionel and van Neuss, Leif, A New Shift-Share Method (December 1, 2014). Growth and Change, 2014, Vol. 45 (4) , Available at SSRN: https://ssrn.com/abstract=2123557 or http://dx.doi.org/10.2139/ssrn.2123557

Lionel Artige (Contact Author)

University of Liège ( email )

B-4000 Liege
Belgium

Leif Van Neuss

University of Liège - HEC Management School ( email )

Boulevard du Rectorat 7 (B31)
LIEGE, Liege 4000
Belgium

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