Abstract
Economic growth of a region is typically measured by quantitative growth in employment and output of the region. Shift-share analysis and growth rate differential analysis have been utilized extensively in the analysis of quantitative growth in employment and output mainly due to their simplicity and low burden of data work. The purpose of this note is to extend the growth rate differential analysis by suggesting new formulae for the analysis. Briefly discussing pros and cons of the shift-share analysis and the growth rate differential analysis, this note reviews selectively the two methods and the literature utilizing them. This note then suggests alternative formulae for the growth rate differential analysis. The original and the alternative formulae are applied to the analysis of employment change in Capital area of Korea to illustrate the difference between the original formula and the alternative formulae of the growth rate differential analysis.
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