A Playbook for Economic Development: A strategic methodology, built from empirical analysis

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Champagne, Katie

Issue Date

2019

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data-driven policy , economic development , regional economics

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Current strategies for economic development policy use shift-share analysis, location quotient calculations and forward and backward linkage information to identify industry clusters to pursue for economic development. But at different levels of unemployment, different strategies are needed. By using wage data and a systematic approach to analysis, a more measurable approach to economic development can be built. Applying regression analysis to wage data isolates the factors that most contribute to high wages, such as industry, occupation and type of education. Assessing these factors, then applying additional criteria to top identified industries, leads to a more robust economic development strategy. By creating a method for identifying factors that lead to desired economic outcomes, such as increased wages, economic development policy can be more efficient.

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