ABSTRACT
This chapter aims to quantify the contribution of trade to the economic growth of the thirty-eight states and regions. It presents a well-understood technique—shift-share analysis—is employed in an extended form to identify the unique contribution of trade. Shift-share analysis is a well-established technique which attempts to decompose regional economic growth into its constituent parts. The basic shift-share model has been successively revised and extended to counter its perceived weaknesses and to adapt to specific cases. The continued widespread use of the model is testimony to both its usefulness and its efficacy in highlighting the structure of regional economies. The application of the shift-share model to the manufacturing growth of the states and regions since 1983 has established and evaluated the role of international trade in regional economies. The shift-share model is a simple but effective tool for disaggregating the components of regional growth.
