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by: Dina Kihn

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# MethTech Planning I PLAN 7012

Marketplace > University of Memphis > none > PLAN 7012 > MethTech Planning I
Dina Kihn
University of Memphis
GPA 3.77

Charles Santo

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Charles Santo
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KARMA
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## Popular in none

This 1 page Class Notes was uploaded by Dina Kihn on Friday October 23, 2015. The Class Notes belongs to PLAN 7012 at University of Memphis taught by Charles Santo in Fall. Since its upload, it has received 30 views. For similar materials see /class/228399/plan-7012-university-of-memphis in none at University of Memphis.

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Date Created: 10/23/15
Charles Santo PLAN 7012 Methods amp Techniques in Planning Fall 2005 Components of ShiftShare Analysis ShiftShare Analysis breaks down economic growth into three components national share industrial mix and a competitive component If you understand the formulas used to calculate the three components you should easily be able to interpret their meaning Remember the competitive component is the only component that includes any characteristics of the local economy in the formula When you re looking at an individual industry you determine the National Share component by multiplying local employment in that industry at the start of the study period 1997 in this case by the overall rate of growth in national employment The figure tells you how much growth would have occurred in the local industry if it had grown at the same rate as overall national employment In other words it indicates how of the industry s growth can be attributed to overall growth in the national economy The Industrial Mix calculation of the shiftshare analysis is based on comparing the growth rate for a particular industry at the national level to the growth rate of all industries at the national level You determine the Industrial Mix component by multiplying local employment in a specific industry at the start of the study period 1997 by the difference between that industry s national rate of growth and the overall rate of growth in national employment If the industry is growing faster than the average for all industries at the national level we would expect some local growth so the industrial mix component will be positive If the industry is growing slower than the national average for all industries at the national level or is in decline the industrial mix component will be negative The industrial mix component indicates how much of the local growth in that industry can be attributed to the performance of that industry at the national level So when I ask which industries gained employment due to industrial mix I m asking which of the industries that gained employment did so largely because they are fast growing industries at the national level The Competitive Component is the only component of the shiftshare analysis that takes into account the local growth rate of a specific industry The calculation is based on comparing the local growth rate for the industry to the national growth rate for that industry You determine the Industrial Mix component by multiplying local employment in a specific industry at the start of the study period 1997 by the difference between the local growth rate for the industry and the national growth rate for the industry If the industry is growing faster locally than it is nationally that means that the locally is increasing its share of the nation s employment in that industry In this case the figure will be positive If the industry is growing slower locally than it is nationally the figure will be negative For industries that are in decline nationally the figure will be positive if the industry is declining more slowly locally than it is nationally and negative if the industry is declining more quickly locally than it is nationally The competitive component indicates how much of the local growth in that industry can be attributed to the local effects or local competitive advantage If a locality is increasing its share of national employment in a particular industry it means that there is something particularly attractive about that locality to firms in that industry You can also look at the components of growth for the locality as a whole by summing the components of all of the industries in your locality For the locality as a whole 0 The national share component indicates how much of the Iocality s total growth can be attributed to overall growth in the national economy In other words it tells you how much local employment would have grown if it had grown at the national rate of growth

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