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Research Methods

Research Methods: Economic Base Analysis, AICP Nov 2022 Test

TermDefinition
Basic Employment export, brings in money from outside the region. ex. Tourism Calculated by individuals unemployed divided by individuals 16 years of age and older in the labor force
Non-Basic Employment import, a local or service employment that recirculates the outside money within the region ex. Banking, Retail.
Economic Base Multiplier ratio between total (basic + non-basic)/ basic employment. Measures how much value is created in the region for an additional dollar of outside money (it multiplies that money.)
Economic Base Analysis Separates basic (exported) and non-basic (imported) sectors through employment data from county business patterns industrial classifications (SIC or NAICS).
Location Quotient - Defines Defines the basic employment (export) of the study area in comparison to the region or nation: > than one is a basic (export) sector. < than one is a non-basic (import) sector.
Shift Share Analysis - Job Creation Calculates employment by how many jobs are created or not created as a result of the region's competitiveness. Identifies leading and lagging industries by looking at national share, industry mix, and regional shift
Input-Output Analysis - Links Suppliers to Purchasers Quantitative method that links suppliers and purchasers to determine the economic output of a region, identifies primary suppliers, intermediate suppliers, intermediate purchasers, and final purchasers
Total Employment basic employment (export) + non-basic employment (import)
National growth share What part of local job growth is due to growth in the national economy
Industry mix The effect of industry trends on local employment
Regional shift Unique local factors relating to local employment growth or decline
North American Industry Classification System (NAICS) Used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data about the U.S. economy, 6 digit code distinguishes industries
Created by: cristinemshoff
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