Last Updated on 04/20/2024 by calculatoracute.com
Introducing Shift Share Analysis Calculator
Check Shift Share Analysis Calculator
Using Shift Share Analysis Calculator sounds very powerful. You can see which businesses are growing in your area and why.
Whether you’re a curious student, a money-savvy investor, or a community leader looking to grow your local economy, the Shift Share Analysis Calculator has something for everyone.
Get ready to unlock your local financial secrets with the Shift Share Analysis Calculator.
What is Shift Share Analysis?
Shift-share analysis is a method of slicing through changes in productivity within a factory or plant.
It divides the overall business performance into different components such as national growth, regional competitiveness, and industry specificity.
Using shift-share analysis, researchers can identify internal competition by comparing an industry’s performance to the national average and assessing how regional factors affect its growth rate.
Shift Share Analysis Formula
The formula for Shift Share Analysis involves breaking down the growth of employment in a particular region into three main components: national growth effect, industrial mix effect, and competitive effect.
National Growth Effect (NGE)
NGE = Regional Growth Rate – National Growth Rate
This component measures how much of the regional employment growth is due to national trends.
It is calculated by subtracting the national growth rate from the regional growth rate.
Industrial Mix Effect (IME)
IME = ∑ (Employment in Industry i in Region * (National Growth Rate for Industry i – Overall National Growth Rate))
The IME accounts for the differences in growth rates among industries at the national level.
It is calculated by multiplying the employment in each industry in the region by the difference between the national growth rate for that industry and the overall national growth rate.
CE = Regional Growth Rate – (NGE + IME)
Competitive Effect (CE): The CE captures any additional growth or decline in employment that is not explained by national trends or industry mix.
It is calculated by subtracting the sum of the National Growth Effect and Industrial Mix Effect from the actual regional growth rate.CE = Regional Growth Rate – (NGE + IME)
By understanding these components and how they contribute to regional employment growth, analysts can gain insights into the competitiveness of industries within a region compared to national trends.
This information can be valuable for policymakers, investors, and businesses seeking to understand and leverage regional economic dynamics.
How to Use a Shift Share Analysis Calculator?
Using a Shift Share Analysis Calculator.
Input Data
Start by gathering data on employment growth for various industries in both the specific region you’re interested in and the entire nation.
You’ll need the regional growth rate and the national growth rate for each industry.
Enter Growth Rates
Enter the regional growth rate and the national growth rate into the designated fields of the calculator.
These rates represent the percentage change in employment for the region and the nation over a specific period.
Calculate Shift-Share Analysis
Click the “Calculate” button on the calculator. The calculator will process the data and perform the necessary calculations to determine the components of the shift-share analysis: National Growth Effect, Industrial Mix Effect, and Competitive Effect.
Review Results
Once the calculations are complete, review the results displayed on the calculator.
You’ll see the contribution of each component to the overall employment growth in the region.
Conclusion
The Shift Share Analysis Calculator makes this a useful tool for students and researchers as well as a wide variety of professionals and government officials.
By leveraging the insights generated by these audits, stakeholders can identify areas of opportunity, mitigate risk, and develop targeted interventions to help local economic development and prosperity
