An extended and integrated approach to shift-share: Decomposition analyses of the Washington metropolitan economy

Abstract

Shift-share is one of the most widely applied techniques for regional and industrial development analysis. However, the conventional shift-share model has limited analytical capacity and is frequently criticized for its structural problems and sometimes-contradictory explanations. The new extension and integrated approach presented in this article enhances the analytical power of this method and introduces new scope for shift-share applications. This new extension is applied to sectoral change studies of the national capital region, including the detection of structural change, the identification of growth sectors, and growth analysis. © 1997 John Wiley & Sons, Inc.