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Abstract
Shift-share analysis, a technique for analyzing a region's economic growth pattems, is explained, and basic uses of the technique are reviewed. Potential pitfalls and means of avoiding them are discussed. A modified technique, actual-expected-differential shift-share, is proposed as more appropriate than the classic method for sector-level analysis aimed at local economic development groups. Potential uses of the revised technique are briefly overviewed, including strategic planning, business retention and expansion programs, and industrial attraction initiatives.