The goal of this paper is twofold. The first goal is to incorporate spatial structure within shift‐share analysis, to take into account interregional interaction in the decomposition analysis. Secondly, this paper develops a taxonomy of regional growth rate decompositions. A taxonomy of the spatial structure is presented; it comprises twenty alternative decomposition structures, including the original standard shift‐share analysis as well as six alternative structures outlined in the taxonomy for non‐spatial structures.
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Nazara et al. (2004) studied this question.
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