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A Dynamic Shift Share Analysis of Economic Growth in West Virginia

Author

Listed:
  • Janaranjana Herath

    (University of Mount Olive, North Carolina)

  • Tesfa Gebremedhin

    (Division of Resource Management, West Virginia University)

  • Blessing Maumbe

    (Division of Resource Management, West Virginia University)

Abstract

A regional economy consists of industries with a variety of economic potentials. A growth or decline in any of these sectors affects the overall growth of the economy. Analysis of economic growth by sector of a particular region helps policy makers, community leaders and researchers in better decision making and problem solving. This study attempts to analyze the employment growth pattern and policy implications in the economic development of West Virginia using a dynamic shift share analysis. The study uses employment data for 38 years from 1970 to 2007 for the empirical analysis. Results indicate that agriculture, mining and manufacturing are no longer the backbone of the economy of West Virginia. The three sectors showed employment declined within the 38-year period. Service and financial insurance and real estate are the most robust sectors contributing 91 percent of employment growth from 1970 to 2007. Apart from these two sectors, the wholesale and retail and construction sectors showed positive economic growth. Identification of investment priorities within these potential sectors and implementation of a comprehensive regional development policy plan would definitely accelerate the economic growth of West Virginia.

Suggested Citation

  • Janaranjana Herath & Tesfa Gebremedhin & Blessing Maumbe, 2010. "A Dynamic Shift Share Analysis of Economic Growth in West Virginia," Working Papers Working Paper 2010-12, Regional Research Institute, West Virginia University.
    • Handle: RePEc:rri:wpaper:2010wp12
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    File URL: https://researchrepository.wvu.edu/rri_pubs/48/
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    References listed on IDEAS

    as
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    6. R. Bradley Hoppes, 1991. "Regional versus Industrial Shift-Share Analysis—With Help from the Lotus Spreadsheet," Economic Development Quarterly, , vol. 5(3), pages 258-267, August.
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    Cited by:

    1. Herath Bandara, Saman J., 2024. "Understanding Workforce Transitions in West Virginia: Exploring Shifts with Shift-Share and Location Quotient Analysis," 2024 Annual Meeting, July 28-30, New Orleans, LA 343638, Agricultural and Applied Economics Association.
    2. Saman Janaranjana Herath Bandara, 2024. "Regional Workforce Dynamics in West Virginia: Insights from Shift-Share and Location Quotient Analysis," Economies, MDPI, vol. 12(11), pages 1-26, October.

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    More about this item

    Keywords

    dynamic shift share; employment; economic growth; West Virginia;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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