Straightening up shift-share analysis

Wadley, David and Smith, Phillip (2003) Straightening up shift-share analysis. The Annals of Regional Science, 37 2: 259-261. doi:10.1007/s001680300124

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Author Wadley, David
Smith, Phillip
Title Straightening up shift-share analysis
Journal name The Annals of Regional Science   Check publisher's open access policy
ISSN 0570-1864
Publication date 2003-05-01
Sub-type Article (original research)
DOI 10.1007/s001680300124
Open Access Status File (Author Post-print)
Volume 37
Issue 2
Start page 259
End page 261
Total pages 3
Editor B. Johansson
Place of publication Heidelberg Germany
Publisher Springer Verlag
Collection year 2003
Language eng
Subject 340200 Applied Economics
340214 Urban and Regional Economics
720299 Microeconomic issues not elsewhere classified
1402 Applied Economics
Abstract Introduced in 1960, shift-share analysis has been widely applied in regional science with frequent dispute over its efficacy and accuracy. During the 1970s and 1980s, inherent shortcomings of the traditional formulation were criticised by a number of workers while others attempted to circumvent the problems by extending the model. To address links between regional economies and their global counterpart, Markusen et al. (1991) applied the traditional model to incorporate trade via a disaggregation of the national growth and industry mix components. A development of the technique by Noponen et al. (1997) into an import/export disaggregated dynamic shift share model was found deficient in a number of aspects (Dinc and Haynes 1998). Noponen et al. (1998) re-evaluated and corrected their 1997 work. They contrasted their approach with that of Dinc and Haynes, who concluded the debate positively with a rejoinder. Stilwell (1969) provided an apparently definitive traditional account complete with a working tableau and relevant equations. Chalmers (1971) pointed to shortcomings in Stilwell's proportionality modification shift and argued a different angle on industrial composition. Later, Edwards et al. (1978) claimed to correct the 1969 error by reworking Stilwell's nomenclature, re-specifying equations and offering graphical explanations. An appraisal of Edwards et al. reveals remaining flaws, correction of which is the aim of this research note.
Keyword shift-share analysis
regional science
Q-Index Code C1
Additional Notes Originally published as David Wadley and Phillip Smith (2003) Straightening up shift-share analysis, The Annals of Regional Science, 37 (2): 259-261. DOI: 10.1007/s001680300124 Copyright 2003 Springer-Verlag. All rights reserved. The original publication is available at

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Created: Wed, 12 Jul 2006, 10:00:00 EST