Abstract
Intuitively, structural decomposition analysis (SDA) demonstrates strong similarities to shift-share analysis (SSA). Both examine the effects of industry shifts due to growth (or decline) and some sort of difference in industry shares. But SSA works its shares across space while SDA works its shares again across industries via technology change (fabrication effects). Suffice it to say, SDA and SSA are related, and this chapter will formally combine the two disparate strands of literature. In particular, it will show how changes in regional growth differentials can be included into a structural decomposition analysis. Moreover, the present availability of a large number of input-output table panels appears to enable the detection of even more parallels between the two approaches. Between the formalization of the SSA-SDA relationship and the available I-O data, a wide range of new, policy-relevant empirical applications is possible. The chapter will conclude by suggesting a few avenues for future research.
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Notes
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There is no reason this could not be four or even more regions. But three regions typically takes any analysis beyond a trivial case.
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Lahr, M.L., Dietzenbacher, E. (2017). Structural Decomposition and Shift-Share Analyses: Let the Parallels Converge. In: Jackson, R., Schaeffer, P. (eds) Regional Research Frontiers - Vol. 2. Advances in Spatial Science. Springer, Cham. https://doi.org/10.1007/978-3-319-50590-9_13
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