45th Congress of the European Regional Science Association: "Land Use and Water Management in a Sustainable Network Society", 23-27 August 2005, Amsterdam, The Netherlands
The main feature of shift-share analysis is, according to Dunn (1960), the computation of geographical shifts in economic activity. Nevertheless, the traditional shift-share approach does not include explicitly the interaction between the considered spatial units (countries, municipalities, regions, etc) since each of these units is considered to be independent with respect to the others. The consideration of the spatial dependence was suggested by some authors who recognized that the decomposed effects are not spatially independent. Nazara y Hewings (2002, 2004) take up this idea again and implement a new shift-share model based on the existence of spatial dependence between the geographic units by means of the definition of a spatial weight matrix. In this paper a comparative analysis of the different models is carried out. The obtained conclusions are also illustrated with some empirical applications related to municipalities.