EconSearch has extensive experience in the analysis of primary industries and natural resource management in a regional context. Tasks in a typical regional analysis involve collection of key primary data, collation of secondary data, identification of threats and opportunities, and preparation of a snapshot of the region's economic structure.
Regional anlaysis can be undertaken in many ways depending on the scope and objectives of the particular assignment. Four common approaches used by EconSearch are listed below:
- Preparation of Standard Regional Indicators
- Regional Economic Impact Analysis
- Import Replacement (Gap) Analysis
- Shift-Share Analysis.
Standard regional indicators provide a statistical summary of key economic and social information for a particular region. A regional statistics database and/or report can assist users of regional statistics to understand the composition and economic and social structure of the region and to help monitor trends in economic growth or decline. Standard regional indicators can be prepared on various geographical levels including:
- Local government area (LGA)
- Statistical local area (SLA)
- Regional development board area
- Natural resources management board area.
EconSearch has prepared sets of regional economic indicators that have included the following:
- Demographic data
- Labour force statistics
- Education and training statistics
- Income data
- Data on building approvals
- Property sales statistics
- Motor vehicle data
- Statistics on local government finance
- Statistics on single location business registrations
- Value of agricultural production
- Tourism data
- Gross regional product.
Regional Economic Impact Analysis
Using standard input-output analysis the regional economic impact of a particular activity can be estimated. Estimates of economic impact are presented in terms of the following indicators:
- Value of output
- Contribution to gross state or regional product
- Household income.
Using extensions to the standard input-output model (demographic, environmental), additional regional impact indicators can be estimated, such as:
- Water consumption
- Energy balance
- Net greenhouse gas emisions.
Import Replacement Analysis
Import replacement or gap analysis aims to identify potential import replacement opportunities within a particular region. This method of analysis involves identification of major import demand generating sectors and the corresponding import supply industries.
Regional economic impact models (e.g. input-output models) can be used to provide braod brush estimates of the impacts on the local/regional economy of alternative import replacement strategies.
Import replacement analysis also seeks to identify why local industries are importing good and services rather than purchasing them locally.
Shift-share analysis is a method of analysing regional growth, a technique that compares regional growth with growth at the state (or national) level. EconSearch uses this approach to help provide insights into regional structural change. The method seeks to attribute changes in the regional economy to various components, namely:
- Share (or state growth) component
- Proportionality shift (or industry mix) component
- Differential shift (or regional) component.
Share (or state growth) component
Indicates the extent to which growth in the state economy has influenced growth at the regional level. This component shows the amount by which growth in the region would have been if it grew at precisely the same rate as the state as a whole.
Proportionality shift (or industry-mix) component
Arises from the fact that some sectors, at a state level, grow more quickly than others. Thus a region that specialises in ‘slow-growth’ sectors is likely to show a net downward proportionality shift. Conversely, a region favoured by a high proportion of ‘rapid-growth’ sectors will, most likely, show a positive proportionality shift.
Differential shift (or regional) component
Regions that have positive differential effects will have locational advantages for particular activities that have improved relative to other regions. Sectors at the regional level do not necessarily grow (or decline) at the same rate as the same sector at the state level due to circumstances which provide regional comparative advantage (or disadvantage).