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Shift-Share Analysis of Regional Growth and Policy: A Critique


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  • Holden, Darryl R
  • Nairn, Alasdair G M
  • Swales, J K


This paper attempts to identify the circumstances in which the shift-share technique will successfully achieve the claims commonly made on its behalf. It is suggested that these circumstances are restrictive given the relevant economic theory. These problems seem to be especially severe when the technique is used in order to analyze the impact of regional policy. The empirical results that are presented suggest that these problems are likely to be important in practice, as well as in principle. Copyright 1989 by Blackwell Publishing Ltd

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Bibliographic Info

Article provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics & Statistics.

Volume (Year): 51 (1989)
Issue (Month): 1 (February)
Pages: 15-34

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Handle: RePEc:bla:obuest:v:51:y:1989:i:1:p:15-34

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Cited by:
  1. Selting, Anne C. & Loveridge, Scott, 1992. "A Summary Of The Literature On Shift-Share Analysis," Staff Papers, University of Minnesota, Department of Applied Economics 14086, University of Minnesota, Department of Applied Economics.
  2. Willem Johannes Maria Heijman & Cornelis Martijn Van der Heide & Raymond J.G.M. Florax & Marc E. Loman, 1998. "Regional Economic growth and accessibility: The case of the Netherlands," ERSA conference papers ersa98p436, European Regional Science Association.
  3. Blien, Uwe & Tassinopoulos, Alexandros, 1999. "Forecasting Regional Employment with the ENTROP Method," ERSA conference papers ersa99pa344, European Regional Science Association.
  4. repec:dgr:uvatin:2098072 is not listed on IDEAS
  5. Thomas de Graaff & Raymond J.G.M. Florax & Peter Nijkamp & Aura Reggiani, 1998. "Diagnostic Tools for Nonlinearity in Spatial Models," Tinbergen Institute Discussion Papers 98-072/3, Tinbergen Institute.
  6. Charles Ian Mead, 2001. "State user costs of capital," Working Papers, Federal Reserve Bank of Boston 01-3, Federal Reserve Bank of Boston.


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