Methodological Analysis of Regional Economy and Employment: Extended Shift-Share for Dhaka District

Abstract

Regional growth of any particular employment sector is influenced by economic and industrial structure of nation and region. Shift Share analysis determines the degree of influence of national development and regional and local factors on overall regional employment growth. It is argued that in traditional shift share component analysis cannot separate the influence of regional structure from local advantages of regional growth. The purpose of this study conduct the shift share analysis without being free of this limitation by using extended shift share analysis method to identify the regional employment pattern for Dhaka district in broad national economic context. Being the capital Dhaka is the heart of economic activity and has colossal influence on the overall national employment. The study finds that, despite Dhaka district has locational advantages for agriculture, it is specializing towards manufacturing, business and service employment and overall regional employment of Dhaka is far ahead of national average.