Research and Assessment Methods –
AICP Questions And Answers
Shift-Share Analysis - Answer - Indicates the employment growth and competitiveness of an industry in a
certain region
National Level in Shift-Share Analysis - Answer - Used as a fundamental base for comparisons to derive
the growth rates of local economies
Regional Level in Shift-Share Analysis - Answer - Used as a comparison to the national level to see if
there is a competitive advantage or disadvantage of a region
Regional Shift Calculation - Answer - 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... - Answer - 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 - Answer - 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 - Answer - 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 - Answer - 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 - Answer - 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... - Answer - geographical and demographical factors
Two Types of Regional Industries: - Answer - Leading (outperforming national industry growth)
Lagging (underperforming national industry growth)
Location Quotient - Answer - 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 - Answer - suggests that local employment is less than expected for given
industry
IMPORTING goods and services
Location Quotient = 1.0 - Answer - suggests that the local employment is exactly sufficient to meet the
local demand (equals the national average)
Location Quotient > 1.0 - Answer - suggests local employment is greater than expected and is therefore
assumed extra jobs
EXPORTING goods and services
AICP Questions And Answers
Shift-Share Analysis - Answer - Indicates the employment growth and competitiveness of an industry in a
certain region
National Level in Shift-Share Analysis - Answer - Used as a fundamental base for comparisons to derive
the growth rates of local economies
Regional Level in Shift-Share Analysis - Answer - Used as a comparison to the national level to see if
there is a competitive advantage or disadvantage of a region
Regional Shift Calculation - Answer - 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... - Answer - 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 - Answer - 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 - Answer - 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 - Answer - 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 - Answer - 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... - Answer - geographical and demographical factors
Two Types of Regional Industries: - Answer - Leading (outperforming national industry growth)
Lagging (underperforming national industry growth)
Location Quotient - Answer - 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 - Answer - suggests that local employment is less than expected for given
industry
IMPORTING goods and services
Location Quotient = 1.0 - Answer - suggests that the local employment is exactly sufficient to meet the
local demand (equals the national average)
Location Quotient > 1.0 - Answer - suggests local employment is greater than expected and is therefore
assumed extra jobs
EXPORTING goods and services
