The spatial shift-share analysis - new developments and some findings for the Spanish case

Abstract

According to Dunn (1960) the main feature of shift-share analysis is the computation ofgeographical shifts in economic activity. Nevertheless, the traditional shift-shareanalysis assumes a specific region to be independent with respect to the others andtherefore this approach does not explicitly include spatial interaction.Some authors such as Hewings (1976) and Nazara and Hewings (2004) recognized theconvenience of considering spatial dependence between spatial units by means of thedefinition of a spatial weights matrix.In this paper an analysis of these models is carried out, leading to a more realisticapproach to the evolution of employment. An empirical application is also presentedsummarizing the main findings for the Spanish case.