Distinguish regional performance with the use of shift-share analysis and MCDA methods: a gross value added perspective

Abstract

This study aims to take into account regional gross value added, to assess the performance of this macroeconomic component for all thirteen Regions of Greece. We apply two different methods for the period between 2010 and 2016, (1) the PROMETHEE II Multi-criteria method and (2) Shift and Share Analysis (SHA). In a nutshell, in nine out of thirteen Regions of Greece, the Promethee II method ranks the regions of Greece in a wholly identical or relatively similar manner to the SHA method, indicating that there is a robust framework considering the joint review for both proposed methods regarding regional performance.

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Notes

  1. 1.

    i.e. due to the difference: \(\frac{{{\text{e}}_{{{\rm ij}}}^{0} }}{{{\text{e}}_{{.{\rm j}}} ^{0} }} - \frac{{{\text{e}}_{{{\rm i}.}}^{0} }}{{{\text{e}}^{0} }}\), where: \({\text{e}}_{{{\rm i}.}}^{0}\) is nationwide employment in industry i and \({\text{e}}^{0}\) is the nationwide employment.

  2. 2.

    See also the following link: www.mcda.it.

  3. 3.

    Greece’s national accounts Gross Value added data by industry NACE rev2. Data are available in from the national statistical office: http://www.statistics.gr/. Greece is divided in thirteen administrative regions (Nuts2 level). The full names of regions in the tables are: N.A. = South Aegean. V.A = North Aegean. I.N = Ionian Islands. Pe = Peloponnese. A.MT = East Macedonia, Thrace. Ip. = Epirus. Kr. = Crete. S.E. = Central Greece. D.M. = Western Macedonia. K.M = Central Macedonia. At. = Attica. Th. = Thessalia. D.E. = Western Greece Full name of industries A = Agriculture, forestry and fishing. (B, C, D, E) = Mining and quarrying, manufacturing, electricity, gas, steam, air conditioning and water supply, sewerage, waste management and remediation activities. F = Construction. (G, H, I) = Wholesale and retail trade, repair of motor vehicles and motorcycles, transportation and storage, accommodation and food service activities. J = Information and communication. K = Financial and insurance activities. L = Real estate activities. (M, N) = Professional, scientific and technical activities, administrative and support service activities. (O, P, Q) = Public administration and defense, compulsory social security, education, human health and social work activities. (R, S, T, U) = Arts, entertainment, recreation, other service activities, activities of households as employers, undifferentiated goods and services producing activities of households for own use, activities of extraterritorial organizations and bodies.

  4. 4.

    They dominate the region's economy sectors that also go moderate nationally.

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Correspondence to Alexandros Garefalakis.

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Xanthos, G., Zopounidis, C., Garefalakis, A. et al. Distinguish regional performance with the use of shift-share analysis and MCDA methods: a gross value added perspective. Oper Res Int J (2020). https://doi.org/10.1007/s12351-020-00582-6

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Keywords

  • Shift and share analysis
  • PROMETHEE II
  • Regional development
  • Regional efficiency
  • Gross value added