What is Shift-Share

Analysis?
One way to account for a regions
competitiveness
Provides a picture of how well a
regions mix of industries is performing
Also, shows how well individual
industries are doing
Can be used to analyze individual
industries or the whole economy
IKDPM Weekly Seminar : 12 May 2010
1

What is Shift-Share
Analysis?
Combined effect of three
components:

World Effect (WE)

Industry Mix (IM)
Regional Share (RS)
IKDPM Weekly Seminar : 12 May 2010
2

What is Shift-Share
Analysis?

World Effect (WE) Component

Growth in countrys exports is influenced by
growth in world exports.

Where:
x = Malaysias export
X = Worlds export
i = commodity groupt
t = time
t -1= base year

Growth
rate
of
aggregate
world
exports x countrys
export of industry i in
base year
IKDPM Weekly Seminar : 12 May 2010
3

What is Shift-Share
Analysis?

Industry Mix (IM) Component

Differences in countrys mix of industry relative to
world mix. Influence of world industry on
countrys industry

Where:
x = Malaysias export
X = Worlds export
i = commodity groupt
t = time
t -1= base year

IKDPM Weekly Seminar : 12 May 2010

4

What is Shift-Share
Analysis?

Regional Share (RS) Component

Countrys export performance may be influenced by its own

unique factors.

Where:
x = Malaysias export
X = Worlds export
i = commodity groupt
t = time
t -1= base year
IKDPM Weekly Seminar : 12 May 2010
5