Research and Assessment Methods –
AICP Questions & Answers6
Shift-Share Analysis - ANSWERS-Indicates the employment growth and competitiveness of an
industry in a certain region
National Level in Shift-Share Analysis - ANSWERS-Used as a fundamental base for comparisons
to derive the growth rates of local economies
Regional Level in Shift-Share Analysis - ANSWERS-Used as a comparison to the national level to
see if there is a competitive advantage or disadvantage of a region
Regional Shift Calculation - ANSWERS-Multiply local employment in a particular industry by the
percentage change in growth of that industry national and regionally
If a local industry is outperforming national numbers it indicates... - ANSWERS-competitive
advantage of a region.
These regional trends can be analyzed to find the specific factors contributing to a competitive
edge.
National Growth Effect in Shift-Share Analysis - ANSWERS-Helps visualize the national trend & is
the base for all calculations
Determines the change of growth in a specific region in comparison with the nation-wide
growth numbers.
, Industrial Mix Effect in Shift-Share Analysis - ANSWERS-Shows which industries outgrew the
overall national economy average & which lagged behind
Calculate: Base Year Employment (National Growth Rate of Sector - Overall National Average
Rate)
Expected Change in Shift-Share Analysis - ANSWERS-Rate of growth you expect to see for a
specific industry based on the national growth effect & the industry mix effect
Calculate: National Growth + Industrial Mix Effect
Competitve Effect in Shift-Share Analysis - ANSWERS-refers to the unique circumstances
circumstances about that specific region that allows for a competitive advantage in the industry
Regional Competitive effect can be impacted by... - ANSWERS-geographical and demographical
factors
Two Types of Regional Industries: - ANSWERS-Leading (outperforming national industry growth)
Lagging (underperforming national industry growth)
Location Quotient - ANSWERS-The ratio of the proportion of local employment in one sector to
a similar proportion in the national economy
Used to identify the degree of self-sufficiency in an employment sector
Location Quotient < 1.0 - ANSWERS-suggests that local employment is less than expected for
given industry
AICP Questions & Answers6
Shift-Share Analysis - ANSWERS-Indicates the employment growth and competitiveness of an
industry in a certain region
National Level in Shift-Share Analysis - ANSWERS-Used as a fundamental base for comparisons
to derive the growth rates of local economies
Regional Level in Shift-Share Analysis - ANSWERS-Used as a comparison to the national level to
see if there is a competitive advantage or disadvantage of a region
Regional Shift Calculation - ANSWERS-Multiply local employment in a particular industry by the
percentage change in growth of that industry national and regionally
If a local industry is outperforming national numbers it indicates... - ANSWERS-competitive
advantage of a region.
These regional trends can be analyzed to find the specific factors contributing to a competitive
edge.
National Growth Effect in Shift-Share Analysis - ANSWERS-Helps visualize the national trend & is
the base for all calculations
Determines the change of growth in a specific region in comparison with the nation-wide
growth numbers.
, Industrial Mix Effect in Shift-Share Analysis - ANSWERS-Shows which industries outgrew the
overall national economy average & which lagged behind
Calculate: Base Year Employment (National Growth Rate of Sector - Overall National Average
Rate)
Expected Change in Shift-Share Analysis - ANSWERS-Rate of growth you expect to see for a
specific industry based on the national growth effect & the industry mix effect
Calculate: National Growth + Industrial Mix Effect
Competitve Effect in Shift-Share Analysis - ANSWERS-refers to the unique circumstances
circumstances about that specific region that allows for a competitive advantage in the industry
Regional Competitive effect can be impacted by... - ANSWERS-geographical and demographical
factors
Two Types of Regional Industries: - ANSWERS-Leading (outperforming national industry growth)
Lagging (underperforming national industry growth)
Location Quotient - ANSWERS-The ratio of the proportion of local employment in one sector to
a similar proportion in the national economy
Used to identify the degree of self-sufficiency in an employment sector
Location Quotient < 1.0 - ANSWERS-suggests that local employment is less than expected for
given industry
