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A Dynamic Shift Share Analysis of Economic Growth in West Virginia

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Author Info

  • Janaranjana Herath

    (University of Mount Olive, North Carolina)

  • Tesfa Gebremedhin

    ()
    (Division of Resource Management, West Virginia University)

  • Blessing Maumbe

    ()
    (Division of Resource Management, West Virginia University)

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    Abstract

    A regional economy consists of industries with a variety of economic potentials. A growth or decline in any of these sectors affects the overall growth of the economy. Analysis of economic growth by sector of a particular region helps policy makers, community leaders and researchers in better decision making and problem solving. This study attempts to analyze the employment growth pattern and policy implications in the economic development of West Virginia using a dynamic shift share analysis. The study uses employment data for 38 years from 1970 to 2007 for the empirical analysis. Results indicate that agriculture, mining and manufacturing are no longer the backbone of the economy of West Virginia. The three sectors showed employment declined within the 38-year period. Service and financial insurance and real estate are the most robust sectors contributing 91 percent of employment growth from 1970 to 2007. Apart from these two sectors, the wholesale and retail and construction sectors showed positive economic growth. Identification of investment priorities within these potential sectors and implementation of a comprehensive regional development policy plan would definitely accelerate the economic growth of West Virginia.

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    File URL: http://rri.wvu.edu/wp-content/uploads/2012/11/Gebremedhin_Dynamic_Shift_Share_Analysis.pdf
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    Bibliographic Info

    Paper provided by Regional Research Institute, West Virginia University in its series Working Papers with number 201012.

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    Length: 23 pages
    Date of creation: 2010
    Date of revision:
    Handle: RePEc:rri:wpaper:201012

    Contact details of provider:
    Postal: 886 Chestnut Ridge Road, P.O. Box 6825, Morgantown, WV 26506-6825
    Phone: 304 293 2896
    Fax: 304 293 6699
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    Web page: http://rri.wvu.edu/research/working-papers/
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    Related research

    Keywords: dynamic shift share; employment; economic growth; West Virginia;

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    1. Esteban, J., 2000. "Regional convergence in Europe and the industry mix: a shift-share analysis," Regional Science and Urban Economics, Elsevier, vol. 30(3), pages 353-364, May.
    2. Selting, Anne C. & Loveridge, Scott, 1994. "Testing Dynamic Shift-Share," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 24(1).
    3. Konstantinos A Melachroinos, 2002. "European integration and the spatial dynamics of manufacturing-employment change," Environment and Planning A, Pion Ltd, London, vol. 34(11), pages 2017-2036, November.
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