Banda a, Saman Jana anjana He a h
A icle
Regional wo k o ce dynamics in Wes Vi ginia: Insigh s
om shi -sha e and loca ion quo ien analysis
Economies
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Sugges ed Ci a ion: Banda a, Saman Jana anjana He a h (2024) : Regional wo k o ce dynamics in
Wes Vi ginia: Insigh s om shi -sha e and loca ion quo ien analysis, Economies, ISSN 2227-7099,
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Ci a ion: He a h Banda a, Saman
Jana anjana. 2024. Regional
Wo k o ce Dynamics in Wes Vi ginia:
Insigh s om Shi -Sha e and
Loca ion Quo ien Analysis. Economies
12: 290. h ps://doi.o g/10.3390/
economies12110290
Academic Edi o : Kos as Ron os
Recei ed: 26 Augus 2024
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economies
A icle
Regional Wo k o ce Dynamics in Wes Vi ginia: Insigh s om
Shi -Sha e and Loca ion Quo ien Analysis
Saman Jana anjana He a h Banda a
Depa men o Economics, Finance and Ma ke ing, College o Business and Social Sciences, Wes Vi ginia S a e
Uni e si y, Ins i u e, WV 25112, USA; [email p o ec ed]
Abs ac : Wes Vi ginia, home o app oxima ely 1.77 million esiden s, has been g appling wi h
signi ican economic challenges cha ac e ized by pe sis en po e y and sluggish g ow h. Despi e
ongoing de elopmen e o s, he s a e’s G oss S a e P oduc (GSP) has seen only a modes inc ease
o 0.1% o e he pas i e yea s, eaching USD 71.7 billion, while he unemploymen a e emains a
4.0%. The annualized employmen g ow h a e o 0.7% lags behind he na ional a e age, and only
abou 54% o Wes Vi ginia’s adul popula ion is ei he employed o ac i ely seeking employmen ,
esul ing in one o he lowes labo o ce pa icipa ion a es in he na ion. In con as , ce ain indus ial
sec o s, such as heal hca e, social assis ance, e ail ade, and accommoda ion and ood se ices, ha e
shown in e mi en g ow h a he coun y and egional le els. To explo e he unique cha ac e is ics
and signi icance o hese egions in ela ion o employmen g ow h, his s udy examines egional
employmen pa e ns in Wes Vi ginia om 2001 o 2020, ocusing on he main egions o he
s a e: Me o Valley, Mid-Ohio Valley, New Ri e /G eenb ie Valley, Moun ain Lakes, and Po omac
Highlands. U ilizing shi -sha e and loca ion quo ien (
LQ
) analyses, his esea ch iden i ies he
sec o s d i ing egional employmen and assesses hei pe o mance. Key indings e eal s ong
sec o al pe o mance in mining, manu ac u ing, and inance in he Mid-Ohio Valley; wholesale
ade, anspo a ion, and u ili ies in he Me o Valley; ag icul u e and adminis a i e se ices in
he New Ri e /G eenb ie Valley; ag icul u e and manu ac u ing in he Po omac Highlands; and
scien i ic se ices, heal hca e, and u ili ies in he Moun ain Lakes egion. Based on hese insigh s, his
s udy ecommends a ge ed policy in e en ions o add ess egional dispa i ies, enhance sec o s wi h
signi ican sho - and long- e m bene i s, and os e balanced economic de elopmen ac oss he s a e.
Keywo ds: shi -sha e analysis; loca ion quo ien analysis; economic g ow h
1. In oduc ion
Wes Vi ginia, nes led in he Appalachian egion o he Uni ed S a es, is one o he leas
populous s a es, wi h a popula ion o 1,775,513. The s a e aces nega i e annualized g ow h
and anks 50 h among U.S. s a es in e ms o g ow h a e. I s g oss s a e p oduc (GSP) has
eached USD 71.7 billion, e lec ing a modes 0.1% inc ease o e he pas i e yea s. Despi e
con inuous e o s o s imula e economic de elopmen , he unemploymen a e emains a
4.0%, unde sco ing ongoing economic challenges (IBISWo ld 2024). Wes Vi ginia has long
s uggled wi h economic di e si ica ion and popula ion decline, exace ba ed by he ac
ha a signi ican po ion o i s esiden s a e aged 65 and olde . Gi en he s a e’s weake
economic pe o mance compa ed o neighbo ing s a es and he b oade U.S. economy, ne
mig a ion has inc easingly con ibu ed o i s popula ion decline.
The s a e’s annualized employmen g ow h a e o 0.7% lags behind he na ional
a e age, and only abou 54% o Wes Vi ginia’s adul popula ion is ei he employed o
ac i ely seeking employmen , making i one o he lowes labo o ce pa icipa ion a es in
he na ion. This p esen s a conside able obs acle o long- e m economic p ospe i y (Bu eau
o Business and Economic Resea ch, John Chambe s College o Business and Economics,
Wes Vi ginia Uni e si y 2020). Addi ionally, ac o s such as poo heal h ou comes and
Economies 2024,12, 290. h ps://doi.o g/10.3390/economies12110290 h ps://www.mdpi.com/jou nal/economies
Economies 2024,12, 290 2 o 26
limi ed human capi al ha e u he hinde ed labo o ce pa icipa ion, a ec ing he s a e’s
capaci y o expand i s wo k o ce and imp o e economic p ospec s.
Wes Vi ginia’s unemploymen a e has luc ua ed in ecen yea s, e lec ing bo h eco-
nomic di icul ies and demog aphic ends (IBISWo ld 2024). Howe e , ce ain indus ial
sec o s, such as he se ice sec o , ha e expe ienced in e mi en g ow h a he coun y
and egional le els. The declining unemploymen a e in egions like No h Cen al and
he Eas e n Panhandle is pa ly a ibu ed o ela i ely heal hy economic condi ions and
g ow h in indus ies beyond adi ional sec o s, bols e ed by in as uc u e de elopmen .
In addi ion o hese, eme ging sec o s like heal hca e, social assis ance, e ail ade, and
accommoda ion and ood se ices ha e con ibu ed o employmen g ow h in a ious
egions o he s a e.
When examining Wes Vi ginia’s i e key egions—Me o Valley, Mid-Ohio Valley,
New Ri e /G eenb ie Valley, Po omac Highlands, and Moun ain Lakes—speci ic indus-
ial sec o s eme ge as po en ial d i e s o u u e g ow h. A egional economy is composed
o di e se i ms and indus ies, each wi h dis inc g ow h pa e ns and economic po en ial.
Sec o al expansions o con ac ions can signi ican ly impac o e all economic pe o mance
(McNama a 1991;Ba ik 2004;He a h e al. 2013). The e o e, unde s anding he compe i i e
ad an ages o di e en egions and sec o s is c i ical o shaping e ec i e policy and in-
es men s a egies (Melach oinos 2002). This is pa icula ly impo an o less-de eloped
egions like Wes Vi ginia, whe e s a egic in es men s could ha e a disp opo iona ely
posi i e e ec on economic de elopmen .
Gi en he limi ed s udies add essing indus ial sec o s, employmen shi s, and
hei impac s on he egions o Wes Vi ginia, his s udy aims o answe he ollowing
esea ch ques ion:
•
How ha e a ious indus ial sec o s con ibu ed o Wes Vi ginia’s economic p og ess
o e he pas wo decades, conside ing he s a e’s economic challenges and demo-
g aphic shi s, and wha policy measu es can be iden i ied o enhance u u e economic
g ow h?
Wi h he signi icance o he abo e esea ch ques ions, his s udy has he ollow-
ing objec i es:
•To analyze indus ial g ow h pa e ns in key sec o s o Wes Vi ginia.
•To e alua e he egional economic impac s o sec o al changes on employmen .
•
To iden i y policy ecommenda ions ha p omo e economic g ow h and add ess
challenges in Wes Vi ginia’s economy.
The emainde o his pape is s uc u ed as ollows: Sec ion 2 e iews he ele an
li e a u e, p o iding a ounda ion o he s udy. Sec ion 3ou lines he da a and me hods
used in he esea ch. Sec ion 4p esen s he empi ical esul s along wi h he analysis. Finally,
Sec ion 5concludes wi h key indings and policy ecommenda ions.
2. Li e a u e Re iew
2.1. Shi -Sha e and LQ Applica ions
In egional economic analysis, a ious me hods such as shi -sha e analysis and
loca ion quo ien (
LQ
) ha e been ex ensi ely used o unde s and economic dynamics and
compe i i e ad an ages. Shi -sha e analysis, de eloped in he 1940s by Daniel C eame
and la e popula ized by Dunn in 1960, decomposes egional economic changes in o
h ee componen s: na ional, indus y, and egional e ec s (Dunn 1960). This me hod
has been widely applied o examine geog aphical shi s in economic ac i i y, making
i aluable o assessing egional compe i i eness o e ime and ac oss a ious ields,
including egional and poli ical economy, u ban s udies, and ma ke ing (Knudsen 2000;
Shi and Yang 2008).
Resea ch has demons a ed he u ili y o shi -sha e analysis in di e se con ex s. Fo
ins ance, he echnique has been employed o o ecas egional g ow h, analyze policy
e ec s, and suppo s a egic communi y planning (Sel ing and Lo e idge 1994). I has
Economies 2024,12, 290 3 o 26
also been used o p edic egional in es men decisions (I eland and Moomaw 1981),
measu e employmen g ow h (Ba and Knigh 1988), and assess economic impac s ac oss
di e en egions (He a h e al. 2013;He a h Banda a 2024). No ably, ecen applica ions
include e alua ing esou ce egions o mine al exploi a ion (Sablin e al. 2018), analyzing
in e na ional ade sensi i i y (Ma kusen e al. 1991), and s udying egional esilience
du ing economic c ises (Giannakis and B uggeman 2015). Shi -sha e analysis con inues
o p o ide aluable insigh s in o egional economic dynamics ac oss a ious sec o s and
geog aphic scales (Dembi´nska e al. 2022). In ecen yea s, i has also been u ilized o assess
sus ainable de elopmen in Polish egions (Cie´slak e al. 2019), examine egional g ow h in
Romania ollowing EU accession (Goschin 2014), and explo e g een in es men ends in
China (Sheng e al. 2021).
Loca ion quo ien (
LQ
) is ano he c ucial ool used o assess egional economic spe-
cializa ion. I compa es a egion’s concen a ion in a pa icula indus y o ha o a b oade
e e ence a ea, ypically on a na ional scale, o highligh sec o s whe e he egion may
ha e a compa a i e ad an age (Mo issey 2014).
LQ
is widely used in egional economic
analysis and policymaking. Recen s udies ha e applied
LQ
o iden i y ho spo s o in-
dus ial esho ing (Sa de e al. 2018), di e en ia e be ween u ban and u al labo ma ke s
(F anconi e al. 2024), and e alua e egional p oduc ion mul iplie s (Mo issey 2014).
LQ
has also been used o de e mine dominan economic sec o s in speci ic egions, such as
hose connec ed o in as uc u e p ojec s (Sampe e al. 2023), and o ack changes in
indus ial concen a ion o e ime (P a s and Rami ez 2018). While
LQ
is e ec i e in
highligh ing egional s eng hs and sec o al ad an ages, i does ha e limi a ions. These
include sensi i i y o ex eme alues, spa si y, and size e ec s in smalle egions (F anconi
e al. 2024). Adjus ed
LQ
alues ha e been p oposed o add ess hese issues and imp o e
classi ica ion obus ness. O e all, bo h shi -sha e analysis and
LQ
emain essen ial ools
o unde s anding and enhancing egional economic pe o mance, each o e ing unique
insigh s in o egional g ow h, compe i i eness, and specializa ion.
2.2. Con ex and Rele ance o he S udy A ea
2.2.1. Ag icul u al Sec o
The ag icul u al sec o in Wes Vi ginia signi ican ly con ibu es o he s a e’s economy,
gene a ing an a e age o USD 800 million annually. Despi e his subs an ial inpu , he
sec o has seen a sligh decline in employmen numbe s in ecen yea s. This end is
conce ning, especially in coun ies such as G eenb ie , Pendle on, Ha dy, Mon oe, and
P es on, which collec i ely hold he mos a mland by ac eage in he s a e (Spe ow 2023;
Wes Vi ginia Ag icul u e 2023). This decline mi o s b oade u al economic pa e ns,
whe e high ag icul u al p oduc i i y pe sis s despi e dec easing wo k o ce pa icipa ion.
His o ically, Wes Vi ginia’s a mland was dedica ed o co n and small g ains, co e ing
1.2 million ac es by he la e 19 h cen u y. Today, abou 40% o co n is ha es ed o silage,
and soybean p oduc ion has shi ed o a cash ma ke . F ui p oduc ion, including apples
and peaches, has no ably dec eased; mos apples a e now p ocessed, and peaches a e
mos ly sold esh (Spe ow 2023). Cu en ly, hay is he leading c op, con ibu ing 2% o he
s a e’s ag icul u al eceip s. The s a e also g ows apples, co n, whea , soybeans, peaches,
and obacco (A i wa 2020). G ass, p ima ily used o pe manen pas u es, co e s nea ly
one- hi d o he 3.6 million ac es o a mland. Li es ock p oduc ion, including b oile s,
ca le, u keys, sheep, hogs, chickens, and a m- aised ish, domina es, accoun ing o 82%
o ag icul u al ou pu (A i wa 2020;Spe ow 2023).
In esponse o indus y challenges, such as hose aced by he dai y sec o , Wes
Vi ginia has s eamlined egula ions o small p oduce s by ans e ing au ho i y o he
WVDA. This egula o y shi suppo s new ma ke oppo uni ies o non-haza dous oods
and milk, add essing sec o -speci ic issues and os e ing g ow h (Leonha d 2021).
Economies 2024,12, 290 4 o 26
2.2.2. Manu ac u ing Sec o
Wes Vi ginia’s manu ac u ing sec o p esen s a complex landscape, ma ked by bo h
posi i e g ow h and signi ican challenges. Chemical manu ac u ing, a dominan o ce
wi hin his sec o , accoun s o 20% o manu ac u ing jobs and nea ly 40% o he sec o ’s
economic ou pu . This indus y includes he p oduc ion o adhesi es, plas ics, pha ma-
ceu icals, and indus ial chemicals. Howe e , he manu ac u ing sec o in Wes Vi ginia is
di e si ied, encompassing mo o ehicles, p ima y me als, pe oleum and coal p oduc s,
and mo e. Despi e i s challenges, he sec o cons i u ed 10.25% o he s a e’s o al ou pu
and employed 6.48% o he wo k o ce in 2018, gene a ing USD 7.94 billion in o al ou pu
(Faube 2022;Mille 2022). Small businesses a e also a i al componen , ep esen ing 76%
o o al manu ac u ing expo e s in he s a e (A i wa 2020). These da a unde sco e he
impo ance o manu ac u ing o he s a e’s economy, aligning wi h na ional ends ha
highligh he sec o ’s ole in economic esilience and job c ea ion.
Recen de elopmen s in Wes Vi ginia’s manu ac u ing sec o highligh bo h g ow h
and challenges. P oc e & Gamble has signi ican ly expanded in Be keley Coun y wi h
a USD 500 million acili y, boos ing local employmen o o e 1400 and ad ancing he
p oduc ion o soaps and cleaning p oduc s (Bu eau o Business and Economic Resea ch
2022). Meanwhile, he sec o aces se backs, such as Via is’ closu e o he Mylan acili y
in Mo gan own, leading o an icipa ed job losses o o e 1400 and heigh ened unce ain y
(Bu eau o Business and Economic Resea ch 2022).
The s a e is also beginning o see g ow h in clean- ech manu ac u ing. G eenPowe is
se ing up a plan o elec ic buses nea Cha les on, and Spa kz plans o build a Giga ac o y
in Taylo Coun y o nex -gen EV ba e ies. Addi ionally, Be kshi e Ha haway Ene gy’s
enewable ene gy mic og id a he o me Cen u y Aluminum si e could a ac mo e
clean- ech manu ac u e s seeking cos -e ec i e ene gy solu ions (Bu eau o Business and
Economic Resea ch 2022).
2.2.3. Cons uc ion Sec o
The cons uc ion sec o in Wes Vi ginia is c ucial o job c ea ion, income, and ax
e enue, a ec ing ela ed indus ies like manu ac u ing, wa ehousing, anspo a ion, and
eal es a e. O e he pas wo decades, he sec o has expe ienced signi ican luc ua ions.
No ably, wo k o ce le els declined sha ply in la e 2018 due o a ious indus y challenges
(Wes Vi ginia Cons uc ion and Building T ends 2023).
Be ween mid-2012 and mid-2013, he s a e s a ed o e 2000 new single- amily homes,
a 19% inc ease om he p e ious yea bu s ill below 2006 le els. Apa men cons uc ion
peaked in 2006–2007 wi h o e 2000 uni s bu d opped o ewe han 300 uni s by mid-2013.
Non-building cons uc ion, including in as uc u e p ojec s, showed a 46% dec ease in
alue in ea ly 2013 compa ed o 2012, wi h he excep ion o wa e way p ojec s.
In 2022, Wes Vi ginia’s non- esiden ial cons uc ion o aled USD 500.6 million (45 h
among U.S. s a es), while esiden ial cons uc ion eached USD 18.1 million (41s ). The
s a e issued 3929 building pe mi s in 2022, e lec ing a 7.3% annualized g ow h a e om
2017 o 2022 (Wes Vi ginia Cons uc ion and Building T ends 2023). These luc ua ions
highligh b oade economic shi s, e lec ing bo h cyclical and long- e m s uc u al changes
in he s a e.
2.2.4. Mining Sec o
The mining sec o , once a co ne s one o Wes Vi ginia’s economy, has seen a d ama ic
decline in wo k o ce numbe s, pa icula ly in coal mining. His o ical da a e eal a sha p
d op om 131,700 mine s in 1948 o jus 20,100 in 2006, a i e- old dec ease e en a e
accoun ing o popula ion decline (Bell and Yo k 2010). This decline con inued wi h coal
mine employmen alling om nea ly 14,500 wo ke s in ea ly 2018 o jus o e 11,000 in la e
2020 (Wi and Fle che 2005;Wi and Leguizamon 2007). Despi e hese challenges, he e
ha e been some imp o emen s due o inc eased global coal demand and empo a y boos s
in he domes ic s eam coal ma ke . In 2021, p oduc ion a e aged nea ly 80 million sho
Economies 2024,12, 290 5 o 26
ons. Al hough mining only comp ises 3% o s a ewide employmen , i accoun ed o 15%
o he s a e’s GDP in 2021 (Bu eau o Business and Economic Resea ch 2022). This decline
e lec s na ional ends in he coal indus y, as ma ke dynamics shi owa d al e na i e
ene gy sou ces and au oma ion educes he need o labo .
2.2.5. Heal hca e Sec o
The heal hca e sec o has eme ged as a c ucial componen o Wes Vi ginia’s economy.
Hospi als alone con ibu e nea ly USD 10.5 billion annually and suppo app oxima ely
46,000 jobs. The s a e’s hospi als se e a ound 227,000 inpa ien s and o e 7 million
ou pa ien s each yea , unde sco ing he sec o ’s signi icance (Young 2019). The sec o
has expe ienced subs an ial g ow h, pa icula ly wi h he expansion o WVU Medicine,
which added mo e han 550 doc o s na ionwide o e ou and a hal yea s. This g ow h
is e lec ed in he b oade end o an inc easing heal hca e wo k o ce o e he pas
wo decades, d i en by signi ican changes in heal h- ela ed ac i i ies (HRSA 2022). These
de elopmen s align wi h na ional ends, whe e heal hca e con inues o expand due o an
aging popula ion and inc easing demand o se ices.
2.2.6. Educa ion Sec o
Wes Vi ginia’s educa ion wo k o ce shows a sligh decline om 2001 o 2020, hough i
empo a ily inc eased be ween 2010 and 2012 be o e s abilizing. In 2020, he s a e employed
283,044 eache s, achie ing a a o able s uden - o- eache a io o 1:14 compa ed o he
na ional a e age o 1:16. Pe -pupil spending a e aged USD 12,697, and he g adua ion a e
imp o ed signi ican ly o 91% in he 2018–2019 school yea , up om 81.4% in 2012–2013
(U.S. Census Bu eau 2022;Na ional Cen e o Educa ion S a is ics 2022). The public high
school e en d opou a e in Wes Vi ginia imp o ed om 3.4% in 2010–2011 o 2.7% in
2011–2012, compa ed o a s able na ional a e o 3.3% du ing hese yea s. Howe e , college
en ollmen among high school g adua es ell om 56.3% in 2011 o 48.3% in 2021 (WVHEPC
(Wes Vi ginia Highe Educa ion Policy Commission) 2023).
Wes Vi ginia’s highe educa ion sec o has shown g ow h in ecen yea s, wi h a 7%
inc ease in deg ees con e ed om 2017 o 2021, o aling 32,051 deg ees (WVHEPC (Wes
Vi ginia Highe Educa ion Policy Commission) 2023). The s a e has 36 deg ee-g an ing
ins i u ions, including 14 p i a e colleges wi h abou 50,000 unde g adua e s uden s, whe e
17,610 deg ees we e awa ded in 2021, la gely h ough online p og ams. Public colleges,
comp ising 13 ins i u ions, con e ed 14,116 deg ees wi h a ound 44,500 s uden s en olled.
Addi ionally, nine communi y colleges en olled 9136 s uden s and awa ded 2144 associa e
deg ees in 2021.
To ad ance i s educa ion, economy, and wo k o ce, Wes Vi ginia should le e age
i s s eng hs in AI, machine lea ning, big da a, and supe compu ing. Wi h 42 colleges
and uni e si ies, s a e leade s a e c ucial in managing educa ional esou ces and ackling
challenges like budge cu s and ou mig a ion (Ca 2016;Williams 2012).
2.2.7. Go e nmen Sec o
The go e nmen sec o in Wes Vi ginia has seen a no able decline in wo k o ce
numbe s, pa icula ly since 2019. Howe e , he ede al go e nmen emains a c ucial
sou ce o employmen in he s a e, wi h agencies such as he FBI, US T easu y, and Na ional
Pa k Se ice expanding hei s a ing le els (Bu eau o Business and Economic Resea ch
2022). The long- e m impac o he s a e’s declining popula ion on ede al go e nmen
decisions emains unce ain, bu he sec o ’s in luence on job c ea ion in Wes Vi ginia is
undeniable. This decline e lec s b oade na ional ends, whe e s a e and local go e nmen
employmen has aced cu s due o budge a y p essu es, while ede al employmen emains
mo e s able.
Economies 2024,12, 290 6 o 26
2.2.8. T anspo a ion Sec o
The anspo a ion sec o in Wes Vi ginia has expe ienced a sligh decline in wo k o ce
le els o e he pas wo decades, wi h a ma ginal dec ease pa icula ly e iden in ecen
yea s, exace ba ed by he challenges posed by he COVID-19 pandemic. The s a e’s ans-
po a ion ne wo k, which includes highways, local oads, s ee s, b idges, ai po s, ansi
and ail, eigh ail oads, and po s and wa e ways, plays a i al ole in acili a ing he
mo emen o a ele s, suppo ing businesses, anspo ing eigh , and d i ing economic
g ow h (Wes Vi ginia T anspo a ion by he Numbe s 2021). The sec o ’s pe o mance
aligns wi h na ional ends whe e anspo a ion in as uc u e emains c i ical bu aces
challenges ela ed o unding, main enance, and adap a ion o new echnologies.
Wes Vi ginia’s anspo a ion equipmen sec o includes a bu geoning au o pa s
supply chain in he Kanawha and Mid-Ohio Ri e alleys and a di e se mix o ci ilian
and de ense ae ospace p oduc ion. Au o pa manu ac u ing has been he as es -g owing
segmen , wi h a 2.5% a e age annual job g ow h since 2008. Despi e pas challenges, he
ae ospace indus y in No h Cen al Wes Vi ginia has expanded, suppo ed by inc eased
comme cial a el e o s and new con ac s a he Applied Ballis ics Labo a o y (ABL),
which is se o g ow u he wi h upcoming No h op G umman hi es (Bu eau o Business
and Economic Resea ch 2022).
Looking ahead, eme ging echnologies a e poised o u he e olu ionize Wes Vi -
ginia’s anspo a ion sec o . The impac o hese echnologies will be in luenced by he
s a e’s unique e ain and u al oad ne wo k. To na iga e hese changes e ec i ely, he
Wes Vi ginia Depa men o T anspo a ion (WVDOT) mus p oac i ely p epa e by inco po-
a ing insigh s om pee s a es and in eg a ing new echnologies in o he 2050 Long-Range
T anspo a ion Plan (Wes Vi ginia T anspo a ion by he Numbe s 2021).
2.2.9. Finance Sec o
The inance sec o in Wes Vi ginia has shown a declining end o employees as
in he o he sec o s. F om 2001 o 2020, he inance sec o in Wes Vi ginia expe ienced
a decline, encompassing oles in secu i ies, commodi y con ac s, inancial in es men s,
eal es a e, and leasing se ices. This educ ion aligns wi h na ional ends in luenced by
consolida ion, echnological ad ancemen s, and egula o y changes, which ha e dimin-
ished adi ional inance oles while inc easing demand o in ech and da a analysis skills.
Cu en ly, app oxima ely 18,000 employees a e in he s a e’s inancial sec o , including
banks, insu ance companies, in es men i ms, eal es a e agencies, and p ope y manage-
men se ices (Bu eau o Business and Economic Resea ch 2022). This ep esen s a loss o
4000 jobs compa ed o he yea 2000.
2.2.10. U ili ies Sec o
The u ili ies sec o has exhibi ed a gene al decline o e ime, wi h a sligh inc ease
obse ed a e 2016. The sec o indica es a dec ease in wo k o ce numbe s, pa icula ly
du ing he pandemic. U ili y se ices in Wes Vi ginia encompass he p o ision and
dis ibu ion o elec ici y, na u al gas, wa e , and was ewa e ea men , all o which a e
essen ial o suppo ing esiden ial, comme cial, and indus ial ac i i ies ac oss he s a e.
While Wes Vi ginia’s coal plan s sugges inc eased u ili y spending and a epaye cos s,
a shi owa d clean ene gy could c ea e an a o dable and eliable ene gy supply o
a epaye s, accompanied by addi ional long- e m communi y bene i s (Massie e al. 2023).
This ansi ion e lec s a b oade na ional and global end owa d sus ainable ene gy
p ac ices, as en i onmen al conce ns and economic incen i es d i e he shi away om
ossil uels.
2.2.11. Se ice Sec o
Wes Vi ginia’s se ice indus y is di e se, encompassing sec o s such as heal h and
educa ion, biome ics and go e nmen , hospi ali y, media and elecommunica ions, p in -
ing, e ail, ou ism, and banking. The communi y, pe sonal, and business se ice sec o s
Economies 2024,12, 290 7 o 26
hold he la ges sha e o he g oss p oduc wi hin his indus y, wi h ou ism and heal hca e
playing pi o al oles in d i ing g ow h and c ea ing nume ous job oppo uni ies. Employ-
men in en e ainmen and accommoda ion se ices indica es a subs an ial decline du ing
he onse o he COVID-19 pandemic bu has ebounded signi ican ly since sp ing 2021
(Bu eau o Business and Economic Resea ch 2022). This eco e y is consis en wi h na ional
ends in he se ice indus y, whe e he pandemic caused widesp ead dis up ion, ollowed
by a g adual bu une en eco e y as es ic ions eased and consume con idence e u ned.
3. Da a and Me hods
3.1. Da a
The p ima y sou ce o da a o his s udy was he Bu eau o Labo S a is ics (BLS).
Employmen changes in Wes Vi ginia o e a 20-yea pe iod, om 2000 o 2020, we e
ca e ully examined o gain insigh s in o wo k o ce ends wi hin he s a e. In addi ion o
he BLS da a, census da a and o he ele an in o ma ion pe aining o Wes Vi ginia we e
inco po a ed o p o ide a comp ehensi e iew o he economic and demog aphic ac o s
in luencing employmen pa e ns.
To conduc he analysis, a de ailed panel da ase spanning he las wo decades was
ca e ully compiled. This da ase allowed o a ho ough examina ion o employmen
ends o e ime, enabling a deepe unde s anding o he shi s and dynamics wi hin Wes
Vi ginia’s labo ma ke . By in eg a ing a ious sou ces o da a, his s udy aimed o p esen
a obus and nuanced analysis o he employmen landscape in he egion. To e ec i ely
achie e i s main objec i es, his s udy u ilized a combina ion o gene al desc ip i e analysis,
shi -sha e analysis, loca ion quo ien analysis, and Boude ille’s classi ica ion ollowing he
shi -sha e analysis.
3.2. Shi -Sha e Analysis
The shi -sha e analysis echnique, de eloped by Daniel C eame in he 1940s and
summa ized by Dunn in 1960 (Shi and Yang 2008), is designed o e alua e changes in
economic ac i i y ac oss di e en egions. This me hod is widely used o analyzing
egional employmen g ow h by b eaking down o al g ow h in o h ee componen s: he
Na ional G ow h E ec (NGE), he Indus y Mix E ec (IME), and he compe i i e e ec
(CE) (Ba and Knigh 1988;Knudsen 2000;Wilson and Che n 2005;He a h e al. 2010,
2013;He a h Banda a 2024).
Shi -sha e analysis can be conduc ed using a ious me hods, each o e ing dis inc
insigh s in o egional economic g ow h. These me hods include s anda d shi -sha e
analysis, dynamic shi -sha e analysis, and spa ial shi -sha e analysis. Each me hod di e s
in e ms o i s da a equi emen s and he dep h o analysis i p o ides.
S anda d shi -sha e analysis is he mos s aigh o wa d and commonly used ap-
p oach, b eaking down employmen changes in o h ee componen s: na ional g ow h,
indus y mix, and egional compe i i e e ec s. I equi es only basic employmen da a a
na ional and egional le els, making i ideal o si ua ions whe e da a a ailabili y is limi ed.
Dynamic shi -sha e analysis in oduces a empo al dimension, ocusing on how e-
gional compe i i eness and indus y pe o mance e ol e o e ime. While his me hod
o e s mo e in-dep h insigh s, i equi es complex ime-se ies da a, making i mo e chal-
lenging o implemen , especially in egions lacking comp ehensi e his o ical da a.
Spa ial shi -sha e analysis conside s he in luence o neighbo ing egions on a egion’s
economic pe o mance. This me hod demands de ailed da a on bo h he a ge egion
and i s su ounding a eas, signi ican ly inc easing da a complexi y. I s applica ion is o en
cons ained by he una ailabili y o spa ially de ailed da ase s.
In his s udy, he s anda d shi -sha e analysis me hod is employed due o i s clea
and s aigh o wa d b eakdown o employmen changes in o na ional g ow h, indus y
mix, and egional compe i i e e ec s. Limi ed da a a ailabili y o he s udy pe iod o
20 yea s made i imp ac ical o conduc dynamic o spa ial analyses. On he o he hand,
he ocus o his s udy was on e alua ing b oad employmen ends and sec o al shi s,
Economies 2024,12, 290 8 o 26
which he s anda d me hod cap u es e ec i ely. I s simplici y ensu es ha he indings a e
easily in e p e able and ac ionable o policymake s, highligh ing compe i i e indus ies
and o e ing aluable insigh s o de eloping a ge ed economic s a egies.
The shi -sha e analysis compa es egional employmen g ow h wi h na ional ends,
p o iding insigh s in o whe he changes a e d i en by b oade na ional ends, speci ic
indus y dynamics, o egional compe i i e ad an ages. By calcula ing hese e ec s, shi -
sha e analysis helps de e mine he ac ual change in egional employmen and sheds ligh
on he unde lying ac o s in luencing economic pe o mance (Richa dson 1978).
Following he no a ion o Richa dson (1978), he h ee g ow h e ec s o a speci ic
egion and indus ial sec o a e exp essed as ollows:
Na ional g ow h e ec o sec o iin egion =Ei ×Gn.
Indus ial mix e ec o sec o iin egion =Ei ×(Gin −Gn).
Compe i i e e ec o sec o iin egion =Ei ×(Gi −Gin).
whe e
Ei = employmen in sec o iin egion a he beginning o he ime pe iod.
Gn= g ow h a e o o al employmen o he na ion o e he ime pe iod.
Gin = g ow h a e in sec o i o he na ion o he ime pe iod.
Gi = g ow h a e in sec o iin egion o he ime pe iod.
In his speci ic in es iga ion, he u iliza ion o shi -sha e analysis is employed o
e alua e employmen g ow h in i e signi ican egions o Wes Vi ginia: Mid-Ohio Valley,
Me o Valley, New Ri e /G eenb ie Valley, Po omac Highlands, and Moun ain Lakes.
Figu e 1illus a es he egional sec o s o Wes Vi ginia, while Table 1lis s he coun ies
wi hin each sec o ou o he s a e’s 55 coun ies. This assessmen is made in ela ion o
he o e all employmen g ow h wi hin he s a e, wi h s a e employmen g ow h ac ing as
a benchma k akin o na ional g ow h. The p ima y ocus lies in compa ing he a e age
egional employmen g ow h o ha o he s a e, highligh ing he in luence o he s a e
g ow h e ec (SGE), indus ial mix e ec (IME), and compe i i e e ec (CE). The cumula i e
impac o hese ac o s e eals he ac ual change in o al employmen wi hin each egion
du ing he speci ied s udy pe iod.
Economies 2024, 12, x FOR PEER REVIEW 8 o 28
In his s udy, he s anda d shi -sha e analysis me hod is employed due o i s clea
and s aigh o wa d b eakdown o employmen changes in o na ional g ow h, indus y
mix, and egional compe i i e effec s. Limi ed da a a ailabili y o he s udy pe iod o 20
yea s made i imp ac ical o conduc dynamic o spa ial analyses. On he o he hand, he
ocus o his s udy was on e alua ing b oad employmen ends and sec o al shi s, which
he s anda d me hod cap u es effec i ely. I s simplici y ensu es ha he indings a e easily
in e p e able and ac ionable o policymake s, highligh ing compe i i e indus ies and o -
e ing aluable insigh s o de eloping a ge ed economic s a egies.
The shi -sha e analysis compa es egional employmen g ow h wi h na ional ends,
p o iding insigh s in o whe he changes a e d i en by b oade na ional ends, speci ic
indus y dynamics, o egional compe i i e ad an ages. By calcula ing hese effec s, shi -
sha e analysis helps de e mine he ac ual change in egional employmen and sheds ligh
on he unde lying ac o s in luencing economic pe o mance (Richa dson 1978).
Following he no a ion o Richa dson (1978), he h ee g ow h effec s o a speci ic
egion and indus ial sec o a e exp essed as ollows:
Na ional g ow h effec o sec o i in egion = Eᵢᵣ × G
ₙ
.
Indus ial mix effec o sec o i in egion = Eᵢᵣ × (Gᵢ
ₙ
− G
ₙ
).
Compe i i e effec o sec o i in egion = Eᵢᵣ × (Gᵢᵣ − Gᵢ
ₙ
).
whe e
Eᵢᵣ = employmen in sec o i in egion a he beginning o he ime pe iod.
G
ₙ
= g ow h a e o o al employmen o he na ion o e he ime pe iod.
Gᵢ
ₙ
= g ow h a e in sec o i o he na ion o he ime pe iod.
Gᵢᵣ = g ow h a e in sec o i in egion o he ime pe iod.
In his speci ic in es iga ion, he u iliza ion o shi -sha e analysis is employed o
e alua e employmen g ow h in i e signi ican egions o Wes Vi ginia: Mid-Ohio Val-
ley, Me o Valley, New Ri e /G eenb ie Valley, Po omac Highlands, and Moun ain
Lakes. Figu e 1 illus a es he egional sec o s o Wes Vi ginia, while Table 1 lis s he
coun ies wi hin each sec o ou o he s a e’s 55 coun ies. This assessmen is made in ela-
ion o he o e all employmen g ow h wi hin he s a e, wi h s a e employmen g ow h
ac ing as a benchma k akin o na ional g ow h. The p ima y ocus lies in compa ing he
a e age egional employmen g ow h o ha o he s a e, highligh ing he in luence o he
s a e g ow h effec (SGE), indus ial mix effec (IME), and compe i i e effec (CE). The
cumula i e impac o hese ac o s e eals he ac ual change in o al employmen wi hin
each egion du ing he speci ied s udy pe iod.
Figu e 1. Regional map o Wes Vi ginia. Sou ce: Vi ginia-map.com (2022).
Figu e 1. Regional map o Wes Vi ginia. Sou ce: Vi ginia-map.com (2022).
Economies 2024,12, 290 15 o 26
Table 3. Employmen g ow h in Me o Valley in Wes Vi ginia: 2001–2020.
Sec o s/Indus ies SGE IME CE Ac ual G ow h
To al Indus ies −23,953.63 0.00 −13,381.37 −37,335.00
In o ma ion −615.22 −2265.51 −294.27 −3175.00
Ag icul u e −37.87 −104.73 −60.40 −203.00
Mining −1130.12 −1978.32 −2881.56 −5990.00
Cons uc ion −1333.23 −828.28 −1041.49 −3203.00
Manu ac u ing −2064.54 −5164.40 920.94 −6308.00
Wholesale T ade −1091.43 −1501.40 −744.17 −3337.00
Re ail T ade −3377.78 −1065.93 −1930.30 −6374.00
T anspo a ion −769.06 −1.42 −1292.52 −2063.00
Finance −1080.72 −1276.33 −841.95 −3199.00
Scien i ic −1086.49 1572.26 −1755.78 −1270.00
U ili ies −311.55 −476.47 −214.98 −1003.00
En e ainmen −215.82 145.38 199.44 129.00
Ren al −334.37 54.14 −276.78 −557.00
Adminis a i e −1453.78 −3.92 −790.30 −2248.00
Heal hca e −4075.44 12,337.52 1028.92 9291.00
Accommoda ion −1994.56 2032.81 −1700.25 −1662.00
Educa ional Se ices −2068.53 −736.36 −292.10 −3097.00
O he Se ices (excep public admin.)
−913.13 −1382.90 −769.98 −3066.00
Table 4highligh s employmen g ow h in he New Ri e /G eenb ie Valley egion
o e he pas wo decades, wi h no able gains in heal hca e, en al, anspo a ion, and
adminis a i e se ices, and minimal losses in ag icul u e and u ili ies.
Table 4. Employmen g ow h in New Ri e /G eenb ie Valley in Wes Vi ginia: 2001–2020.
Sec o s/Indus ies SGE IME CE Ac ual G ow h
To al Indus ies −9784.49 0.00 −2726.51 −12,511.00
In o ma ion −234.52 −863.59 −194.90 −1293.00
Ag icul u e −73.98 −204.59 77.56 −201.00
Mining −471.38 −825.17 898.56 −398.00
Cons uc ion −505.02 −313.75 −888.24 −1707.00
Manu ac u ing −555.12 −1388.63 −39.25 −1983.00
Wholesale T ade −348.36 −479.22 −10.42 −838.00
Re ail T ade −1688.42 −532.82 −907.77 −3129.00
T anspo a ion −151.25 −0.28 290.53 139.00
Finance −318.61 −376.27 −569.12 −1264.00
Scien i ic −265.09 383.62 −378.53 −260.00
U ili ies −69.51 −106.30 62.81 −113.00
En e ainmen −174.30 117.41 −283.11 −340.00
Ren al −91.27 14.78 197.49 121.00
Adminis a i e −342.01 −0.92 897.93 555.00
Heal hca e −1995.38 6040.58 −1756.20 2289.00
Accommoda ion −1089.07 1109.96 −1083.89 −1063.00
Educa ional Se ices −1002.63 −356.92 −306.45 −1666.00
O he Se ices (excep public admin.)
−408.58 −618.78 −332.64 −1360.00
The heal hca e sec o added 2289 jobs, d i en by a a o able indus ial mix e ec
(IME), despi e un a o able s a e ends (SGE) and compa a i e e ec (CE). Simila ly, ad-
minis a i e se ices g ew by 555 jobs, bene i ing om posi i e compe i i e and indus y
composi ion e ec s. The en al sec o also highligh s modes g ow h, adding 121 jobs, wi h
i s pe o mance bols e ed by s ong CE and IME, despi e nega i e s a e ends.
Con e sely, he e ail ade sec o los 3129 jobs, acing declines ac oss all componen s—
s a e ends, indus y composi ion, and compe i i eness—highligh ing challenges like
changing consume beha io . The educa ional se ices sec o los 1666 jobs, hinde ed by
weak compe i i e pe o mance and un a o able indus y and s a e ends. Manu ac u ing
also aced signi ican losses, wi h 1983 jobs los due o nega i e impac s ac oss all compo-
nen s, e lec ing b oade indus y challenges and educed egional compe i i eness. The
ag icul u e sec o in he New Ri e /G eenb ie Valley egion indica es a modes decline
o 201 jobs om 2001 o 2020. Nega i e s a e g ow h and indus ial mix e ec s indica e
Economies 2024,12, 290 16 o 26
un a o able s a e ends and sec o composi ion. Howe e , a posi i e compe i i e e ec
sugges s ha he sec o pe o med ela i ely well compa ed o o he egions, showing
some esilience despi e b oade challenges.
Table 5p esen s he shi -sha e analysis o he Po omac Highlands egion om
2001 o 2020, e ealing mixed employmen ends ac oss a ious sec o s. G ow h was
obse ed in heal hca e, scien i ic se ices, e ail ade, educa ion, and accommoda ion,
while sec o s such as manu ac u ing, cons uc ion, en e ainmen , and adminis a i e
se ices expe ienced signi ican declines.
Table 5. Employmen g ow h in Po omac Highlands in Wes Vi ginia: 2001–2020.
Sec o s/Indus ies SGE IME CE Ac ual G ow h
To al Indus ies −8447.03 0.00 7345.03 −1102.00
In o ma ion −280.97 −1034.66 285.63 −1030.00
Ag icul u e −83.62 −231.26 51.88 −263.00
Mining −25.29 −44.26 230.55 161.00
Cons uc ion −496.90 −308.70 −403.39 −1209.00
Manu ac u ing −1351.46 −3380.66 692.13 −4040.00
Wholesale T ade −294.73 −405.44 −73.82 −774.00
Re ail T ade −1207.15 −380.94 2007.10 419.00
T anspo a ion −187.24 −0.35 0.58 −187.00
Finance −234.63 −277.10 537.73 26.00
Scien i ic −216.40 313.16 662.24 759.00
U ili ies −21.88 −33.46 79.33 24.00
En e ainmen −169.95 114.48 −587.53 −643.00
Ren al −91.27 14.78 −20.51 −97.00
Adminis a i e −340.25 −0.92 −383.84 −725.00
Heal hca e −1327.47 4018.63 2641.84 5333.00
Accommoda ion −913.36 930.88 911.48 929.00
Educa ional Se ices −966.05 −343.90 1498.95 189.00
O he Se ices (excep public admin.)
−238.40 −361.04 625.44 26.00
The heal hca e sec o led he egion’s g ow h, adding 5333 jobs. This g ow h was p i-
ma ily d i en by a s ong indus ial mix e ec (IME) and compe i i e e ec (CE), sugges ing
ha he sec o bene i ed om a o able changes in i s indus y composi ion compa ed o
s a e ends. Despi e a nega i e s a e g ow h e ec (SGE), he heal hca e sec o ’s posi i e
compe i i e e ec (CE) indica es i ou pe o med i s compe i o s, e lec ing obus egional
demand and expansion in heal hca e se ices. The scien i ic sec o also expe ienced g ow h,
adding 759 jobs. This inc ease was la gely suppo ed by a a o able IME, which highligh s
he sec o ’s bene i om ad an ageous changes in indus y composi ion. The posi i e CE
u he unde sco es he sec o ’s s ong pe o mance ela i e o i s compe i o s, despi e
b oade s a e ends no being suppo i e. The accommoda ion sec o added 929 jobs,
d i en by a posi i e IME and s ong egional compe i i eness. Despi e un a o able s a e
ends, he sec o le e aged i s ad an ages o ou pe o m compe i o s.
On he o he hand, he manu ac u ing sec o expe ienced a signi ican decline, los-
ing 4040 jobs. This down u n was d i en by nega i e e ec s ac oss all componen s: an
un a o able SGE, a declining IME, and a poo CE, highligh ing he sec o ’s s uggles wi h
compe i i eness and b oade indus y challenges. Simila ly, he en e ainmen sec o expe-
ienced a decline o 643 jobs, p ima ily due o a nega i e CE, indica ing unde pe o mance
compa ed o compe i o s. Despi e some a o able changes in he sec o ’s composi ion,
as e lec ed by a posi i e IME, he o e all decline was exace ba ed by un a o able s a e
ends. Adminis a i e se ices also aced a educ ion o 725 jobs. The sec o was nega i ely
impac ed ac oss all componen s, wi h he SGE, IME, and CE all e lec ing b oade egional
challenges and di icul ies in main aining compe i i eness.
Table 6p esen s he shi -sha e analysis esul s o he Moun ain Lakes egion om
2001 o 2020, showing signi ican employmen g ow h in he heal hca e, scien i ic, ad-
minis a i e, and accommoda ion sec o s. Con e sely, he mining, manu ac u ing, and
educa ional se ices sec o s expe ienced declines.
Economies 2024,12, 290 17 o 26
Table 6. Employmen g ow h in Moun ain Lakes in Wes Vi ginia: 2001–2020.
Sec o s/Indus ies SGE IME CE Ac ual G ow h
To al Indus ies −14,463.28 0.00 14,217.28 −246.00
In o ma ion −259.10 −954.10 353.20 −860.00
Ag icul u e −58.22 −161.00 −35.78 −255.00
Mining −672.26 −1176.82 −768.92 −2618.00
Cons uc ion −802.93 −498.82 1893.75 592.00
Manu ac u ing −1067.67 −2670.76 −485.58 −4224.00
Wholesale T ade −352.36 −484.72 898.08 61.00
Re ail T ade −2185.20 −689.59 1467.79 −1407.00
T anspo a ion −346.48 −0.64 734.12 387.00
Finance −351.07 −414.61 198.68 −567.00
Scien i ic −503.73 728.95 1509.78 1735.00
U ili ies −220.17 −336.72 218.88 −338.00
En e ainmen −76.92 51.81 505.11 480.00
Ren al −151.13 24.47 174.66 48.00
Adminis a i e −550.18 −1.48 1645.67 1094.00
Heal hca e −2875.11 8703.77 2572.34 8401.00
Accommoda ion −1301.60 1326.56 989.04 1014.00
Educa ional Se ices −2200.14 −783.21 −203.65 −3187.00
O he Se ices (excep public admin.)
−489.02 −740.61 627.63 −602.00
The heal hca e sec o indica es signi ican g ow h, adding 8401 jobs. This inc ease was
la gely d i en by a s ong indus ial mix e ec (IME), indica ing a o able changes in he
sec o ’s composi ion despi e an un a o able s a e g ow h e ec (SGE). The posi i e com-
pe i i e e ec (CE) u he unde sco es he sec o ’s ou pe o mance ela i e o compe i o s,
e lec ing a s ong egional demand. The scien i ic sec o added 1735 jobs, suppo ed by
a a o able IME and posi i e CE, demons a ing s ong pe o mance despi e a nega i e
SGE. Simila ly, adminis a i e se ices g ew by 1094 jobs, d i en by posi i e CE and IME,
showing esilience and compe i i eness despi e un a o able s a e ends.
Con e sely, he mining sec o expe ienced a decline o 2618 jobs, in luenced by nega-
i e e ec s ac oss all componen s: an un a o able SGE, a declining IME, and a poo CE.
This down u n highligh s b oade challenges and educed compe i i eness in he min-
ing indus y. The manu ac u ing sec o also aced a signi ican decline, losing 4224 jobs.
Nega i e e ec s ac oss he SGE, IME, and CE e lec b oade indus y challenges and dimin-
ished egional compe i i eness. The educa ional se ices sec o expe ienced a decline o
3187 jobs, wi h nega i e e ec s ac oss all componen s, including an un a o able SGE, a
declining IME, and poo pe o mance ela i e o he compe i o s. This decline sugges s
challenges such as unding issues and declining en ollmen amid b oade s a e ends.
4.3. Loca ion Quo ien Analysis
Loca ion quo ien s (
LQ
s) a e a ios used o compa e employmen dis ibu ion ac oss
di e en indus ies wi hin a speci ic a ea ela i e o a e e ence a ea, ypically he o e all
indus y o al (Richa dson 1973). Acco ding o he Bu eau o Labo S a is ics, an
LQ
o 1
indica es ha he indus y’s sha e o local employmen is p opo ional o i s sha e in he
e e ence a ea. An
LQ
g ea e han 1 signi ies ha he indus y has a highe p opo ion o
local employmen compa ed o he e e ence a ea.
Table 7p esen s he
LQ
s o all egions o Wes Vi ginia o he yea 2020. The i s
column o he able lis s each sec o o indus y, while he emaining columns show he
egions. The able illus a es changes in employmen numbe s o e he 20-yea pe iod
ac oss all egions, highligh ing he c i ical impo ance o ce ain indus ies o speci ic
egions o Wes Vi ginia in e ms o employmen . This unde sco es he need o unde s and
and p io i ize key indus ies wi hin he egions. Addi ionally,
LQ
analysis iden i ies
eme ging indus ies and emphasizes he need o ocused de elopmen e o s. This insigh
helps policymake s and s akeholde s make in o med decisions abou esou ce alloca ion
and economic de elopmen s a egies.
Economies 2024,12, 290 18 o 26
Table 7. Loca ion quo ien analysis o all egions in Wes Vi ginia, 2020.
Mid-Ohio
Valley Me o Valley New
Ri e /G eenb ie
Po omac
Highlands
Moun ain
Lakes
To al
Indus ies 11111
In o ma ion 0.6438 1.0497 0.8422 1.6319 0.9292
Ag icul u e 0 0.2886 2.4434 2.5563 0.7891
Mining 1.4640 0.7875 1.8487 0.1924 0.9137
Cons uc ion 1.0454 0.9853 0.7375 0.8594 1.2182
Manu ac u ing 1.5515 0.9755 0.5587 1.5202 0.5706
Wholesale Tde 1.0493 1.1837 0.9956 0.8114 0.8252
Re ail T ade 1.0614 0.9290 1.0984 1.0446 0.9676
T anspo a ion 0.8915 1.1144 0.8349 0.8227 1.1246
Finance 1.3911 1.1955 0.6787 0.9487 0.6540
Scien i ic 0.7242 1.1760 0.6926 0.90227 1.2038
U ili ies 0.5246 1.2143 0.8298 0.3644 1.5338
En e ainmen 1.2222 0.9599 1.3134 0.9219 0.7511
Ren al 0.7333 1.2044 1.1121 0.8414 0.9518
Adminis a i e
0.7777 1.2748 1.0273 0.6428 0.9861
Heal hca e 0.8807 1.0355 1.0677 0.9211 1.0490
Accommoda ion
1.0708 0.8807 1.1105 1.1774 0.9426
Edu. Se ices 0.8044 0.8634 0.9617 1.1775 1.2532
O he Se ices 1.0885 0.9602 1.0168 0.9869 0.9850
4.3.1. Mid-Ohio Region
Table 7p esen s he loca ion quo ien s (
LQ
s) o employmen concen a ion in he
Mid-Ohio Valley egion, highligh ing se e al sec o s wi h posi i e
LQ
s ha exceed he s a e
a e age. Among hese, mining, manu ac u ing, and inance s and ou as he key sec o s
wi h he highes LQs, indica ing hei signi ican ole in he egion’s economy in 2020.
No ably, he mining sec o , wi h an
LQ
o 1.4640, s ands ou o i s signi ican job
concen a ion, unde sco ing i s c i ical ole in he egional economy. This ele a ed
LQ
highligh s he sec o ’s eliance on local na u al esou ces and ac i e mining ope a ions, in-
dica ing ha he Mid-Ohio Valley has main ained a compe i i e ad an age in mining. This
ad an age is likely due o key acili ies and a skilled wo k o ce. The posi i e compe i i e
e ec obse ed in he shi -sha e analysis o he egion (Table 2) u he unde sco es he
impo ance o con inued in es men in mining o he egion’s economic s abili y.
Simila ly, he manu ac u ing sec o s ands ou wi h an
LQ
o 1.5515, indica ing a
s ong concen a ion o manu ac u ing jobs in he Mid-Ohio Valley egion. This high
LQ
sugges s a sus ained compe i i e ad an age in manu ac u ing. Howe e , he compe i i e
e ec (CE) om he shi -sha e analysis o he pe iod 2000–2020 (Table 2) e eals ha he
egion is unde pe o ming ela i e o he s a e a e age. This unde pe o mance implies
ha u he in es men s in manu ac u ing may no yield long- e m bene i s o he egion.
The inance sec o also demons a es a s ong
LQ
o 1.3911, indica ing a highe concen-
a ion o inancial se ices employmen compa ed o he s a e a e age. This is ein o ced
by he compe i i e e ec in shi -sha e analysis, unde sco ing he sec o ’s po en ial o d i -
ing egional economic g ow h in he u u e. Simila ly, he en e ainmen sec o e lec s his
end, wi h bo h i s
LQ
alue and shi -sha e analysis sugges ing i s g owing impo ance in
he egion.
4.3.2. Me o Valley Region
In he Me o Valley egion, se e al indus ies displayed no able loca ion quo ien
(
LQ
) alues in 2020 (Table 7). Among hese, he Wholesale T ade, T anspo a ion, and
U ili ies sec o s a e pa icula ly signi ican , e lec ing he egion’s di e se and s a egically
impo an economic ac i i ies.
The Wholesale T ade sec o , wi h an
LQ
o 1.1837, indica es a highe concen a ion o
jobs compa ed o he s a e a e age, highligh ing he Me o Valley egion’s pi o al ole in
dis ibu ion and ade. This ad an age is likely suppo ed by he egion’s s a egic loca ion
and in as uc u e, which bols e wholesale ac i i ies in 2020. Howe e , he compe i i e
Economies 2024,12, 290 19 o 26
e ec s (CE) om he shi -sha e analysis o he egion (Table 3) sugges ha his sec o
may no p o ide long- e m egional bene i s, as he g ow h may no be d i en by local
ad an ages. Compa ing
LQ
s wi h CE helps iden i y whe he concen a ed sec o s a e
expanding due o egional s eng hs (posi i e CE) o acing local challenges (nega i e CE).
Simila ly, he T anspo a ion sec o , wi h an
LQ
o 1.1144, and he U ili ies sec o , wi h
an
LQ
o 1.2143, also show signi ican employmen concen a ions, ye bo h lack posi i e
compe i i e e ec s in he shi -sha e analysis, indica ing po en ial challenges in sus aining
hese sec o s’ g ow h.
Howe e , he heal hca e sec o (
LQ
1.0355), along wi h manu ac u ing (
LQ
0.9755) and
en e ainmen (
LQ
0.9555), all exhibi
LQ
s close o 1 and demons a e posi i e compe i i e
e ec s in he shi -sha e analysis. This indica es ha hese sec o s a e bene i ing om
local ad an ages, sugges ing ha u u e in es men s in hese a eas could d i e egional
employmen g ow h. These indings poin o he Me o Valley egion’s s ong po en ial in
sec o s like heal hca e, manu ac u ing, and en e ainmen , unde sco ing he impo ance o
s a egic in es men s o capi alize on hese local s eng hs.
4.3.3. New Ri e /G eenb ie Valley Region
In he New Ri e /G eenb ie Valley egion, se e al indus ies exhibi ed no able
loca ion quo ien (
LQ
) alues in 2020, pa icula ly in ag icul u e, mining, en e ainmen ,
en al, and adminis a i e se ices (see Table 7). Fo example, he ag icul u e sec o s ands
ou wi h a high
LQ
o 2.4434, indica ing ha employmen in his indus y is mo e han
wice as concen a ed in his egion compa ed o he s a e a e age. This unde sco es
ag icul u e’s i al ole in he local economy, likely d i en by he egion’s u al cha ac e
and ex ensi e a ming ac i i ies. The posi i e compe i i e e ec s in he shi -sha e analysis
(Table 4) u he suppo his ad an age. Simila ly, he mining sec o , wi h an
LQ
o 1.8487,
adminis a i e se ices wi h an
LQ
o 1.1105, and en al se ices wi h an
LQ
o 1.1101,
demons a e s ong egional concen a ions and posi i e compe i i e e ec s, highligh ing
he local bene i s in hese indus ies.
Howe e , while he en e ainmen sec o shows a no able
LQ
o 1.3234, i s compe i i e
e ec s a e less a o able, wi h nega i e alues (see Table 4). This sugges s ha he sec o ’s
concen a ion may no be d i en by local ad an ages bu a he by o he ac o s.
4.3.4. Po omac Highlands Region
In he Po omac Highlands egion, se e al indus ies exhibi ed no able loca ion quo ien
(
LQ
) alues in 2020, emphasizing hei signi ican concen a ion compa ed o s a e a e ages
(see Table 7). The ag icul u e sec o s ands ou wi h an excep ionally high
LQ
o 2.5563,
indica ing ha employmen in ag icul u e is mo e han wice as concen a ed in he Po omac
Highlands as i is s a ewide. Despi e his, he compe i i e e ec om he shi -sha e analysis
(Table 5) is less a o able, sugges ing a lowe le el o local compe i i eness in his sec o .
The manu ac u ing sec o also shows a s ong p esence wi h an
LQ
o 1.5202, and he
shi -sha e analysis indica es posi i e compe i i e e ec s. This e lec s a obus concen-
a ion o manu ac u ing jobs in he egion, signi ying ha manu ac u ing con inues o
be a c ucial pa o he Po omac Highlands’ economy, suppo ed by local indus ies and
p oduc ion acili ies.
The educa ion sec o , wi h an
LQ
o 1.1775, also demons a es signi ican compe i i e
e ec s acco ding o he shi -sha e analysis. This sugges s ha educa ional se ices a e
no ably mo e concen a ed in he Po omac Highlands compa ed o he s a e a e age, likely
due o he p esence o educa ional ins i u ions and suppo se ices ca e ing o he local
popula ion.
Addi ionally, he en al and accommoda ion sec o s, based on
LQ
and shi -sha e
analysis esul s, could play a signi ican ole in shaping he egion’s economic landscape
mo ing o wa d.
Economies 2024,12, 290 20 o 26
4.3.5. Moun ain Lakes Region
In he Moun ain Lakes egion, se e al indus ies exhibi ed no able loca ion quo ien
(
LQ
) alues in 2020, highligh ing hei signi ican concen a ion compa ed o s a e a e ages
(see Table 7). Key sec o s wi h high
LQ
s include educa ion, scien i ic se ices, inance,
mining, heal hca e, and u ili ies.
The scien i ic, heal hca e, inance, and u ili ies sec o s all show posi i e
LQ
s and
a o able compe i i e e ec s in he shi -sha e analysis (Table 6), indica ing a s ong egional
ad an age in hese indus ies. In es ing u he in hese sec o s could yield subs an ial
long- e m bene i s.
Fo example, he scien i ic sec o has a obus
LQ
o 1.2038, e lec ing a high concen-
a ion o employmen in esea ch and de elopmen o specialized echnical consul ing
wi hin he egion. This sugges s a s ong p esence o scien i ic and echnical se ices ha
con ibu e signi ican ly o he local economy. The u ili ies sec o boas s an imp essi e
LQ
o 1.5338, unde sco ing i s c i ical ole in he egion’s economy. This high
LQ
indica es ha
ene gy p oduc ion, dis ibu ion, and ela ed se ices a e no ably mo e concen a ed in he
Moun ain Lakes egion compa ed o he s a e a e ages, likely due o he egion’s na u al
esou ces and in as uc u e suppo ing local and egional ene gy needs.
While he educa ion sec o also s ands ou wi h an
LQ
o 1.2532, indica ing a signi ican
p esence, he shi -sha e analysis sugges s ha i may no be as compe i i e in gene a ing
addi ional economic bene i s o employmen compa ed o o he sec o s.
4.4. Boude ille’s F amewo k: Insigh s in o Wes Vi ginia’s Economic Sec o s
Boude ille’s (1966) classi ica ion is employed in his s udy o p o ide a s uc u ed
amewo k o unde s anding he economic dynamics o di e en egions wi hin Wes
Vi ginia. By ca ego izing egions based on hei economic s uc u e, his classi ica ion aids
in iden i ying speci ic challenges and oppo uni ies o each egion, pa icula ly when
analyzed alongside shi -sha e analysis. Boude ille’s classi ica ion ca ego izes egions in o
h ee ypes: Specialized, Di e si ied, and Pe iphe al Regions.
Specialized Regions ely hea ily on one o a ew key indus ies o hei economic
ac i i y, bene i ing om he s ong pe o mance o hese sec o s while also becoming ul-
ne able o sec o -speci ic shocks, such as luc ua ions in commodi y p ices. Di e si ied
Regions, in con as , ea u e a balanced mix o indus ies ac oss a ious sec o s, including
p ima y (like ag icul u e), seconda y (such as manu ac u ing), and e ia y (like se ices),
which enhances hei esilience o economic down u ns. Pe iphe al Regions a e cha ac e -
ized by weake economic s uc u es and o en ace challenges like high unemploymen and
declining indus ies, necessi a ing a ge ed policy in e en ions o s imula e g ow h. When
combined wi h shi -sha e analysis, Boude ille’s amewo k p o ides deepe insigh s in o
how speci ic indus ies d i e egional economic changes, e ealing he compe i i e e ec s,
s uc u al changes, and indus y mix ha con ibu e o o e all employmen g ow h o
decline in a egion.
4.4.1. Mid-Ohio Valley Region
The employmen g ow h da a p esen ed in Table 2illus a e he indings o he shi -
sha e analysis o he Mid-Ohio Valley egion. This in o ma ion can be u he examined
h ough he amewo k o Boude ille’s (1966) classi ica ion, which o e s aluable insigh s
in o he egion’s economic s uc u e.
The mining sec o demons a es a signi ican posi i e compe i i e e ec (CE) o 2521.37,
indica ing i s dominan ole in he egion’s economy. Despi e nega i e ends in o he sec-
o s, mining’s s ong pe o mance sugges s specializa ion in his indus y. Howe e , such
dependence on mining makes he egion ulne able o sec o -speci ic shocks, pa icula ly
gi en he ola ili y o he mining ma ke .
In he heal hca e sec o , he e is no able s uc u al g ow h e lec ed by a la ge indus ial
mix e ec (IME) o 7288.51, bu i s nega i e CE o -4486.90 indica es ha o he ac o s a e
hinde ing i s ull g ow h po en ial. While sec o s like en e ainmen , accommoda ion, and
Economies 2024,12, 290 21 o 26
scien i ic se ices exhibi small posi i e compe i i e e ec s, hey a e insu icien o classi y
he egion as ully di e si ied.
The o e all decline in mos sec o s, including c i ical indus ies like manu ac u ing,
e ail ade, and educa ional se ices, poin s o cha ac e is ics o a pe iphe al economy.
The o al indus ies ca ego y shows a signi ican employmen decline o
−
18,498 jobs,
highligh ing an unde de eloped o declining economic s uc u e. Pe iphe al egions o en
equi e policy in e en ion o s imula e g ow h and lessen eliance on declining sec o s.
4.4.2. Me o Valley Region
The employmen g ow h da a p esen ed in Table 3illus a es he indings o he
shi -sha e analysis o he Me o Valley egion. This in o ma ion can be u he examined
h ough he amewo k o Boude ille’s (1966) classi ica ion, which o e s aluable insigh s
in o he egion’s economic s uc u e.
The mining sec o exhibi s a nega i e compe i i e e ec (CE) o
−
2881.56, leading o
an ac ual job loss o
−
5990.00. This sugges s ha he egion is specialized in mining, bu
such dependence on a declining indus y has esul ed in signi ican economic challenges.
The heal hca e sec o shows a posi i e indus ial mix e ec (IME) o 12,337.52 and
a compe i i e e ec (CE) o 1028.92, indica ing g ow h po en ial. Howe e , his is o se
by declines in manu ac u ing, e ail, and educa ional se ices. The mixed pe o mance
o sec o s like en e ainmen and accommoda ion is insu icien o classi y he egion
as di e si ied.
O e all, he Me o Valley egion exhibi s cha ac e is ics o a pe iphe al economy,
wi h o al indus ies expe iencing an ala ming employmen decline o
−
37,335 jobs. Mos
sec o s, especially manu ac u ing and e ail, a e in decline, highligh ing he need o policy
in e en ions o s imula e g ow h.
4.4.3. New Ri e /G eenb ie Valley Region
The employmen g ow h da a in Table 4highligh he esul s o he shi -sha e analysis
conduc ed o he New Ri e /G eenb ie Valley egion. This analysis can be u he
in e p e ed using Boude ille’s (1966) classi ica ion, which p o ides signi ican insigh s in o
he economic s uc u e o he egion.
The mining sec o shows a compe i i e e ec (CE) o 898.56, indica ing i s ole as a
key indus y in he egion’s economy. Howe e , despi e his posi i e compe i i e e ec ,
he o e all nega i e g ow h in o he sec o s highligh s a conce ning dependence on mining.
The signi ican loss o employmen ac oss a ious indus ies sugges s ha while mining
may p o ide some s abili y, he egion emains ulne able o sec o -speci ic shocks.
The heal hca e sec o demons a es subs an ial po en ial wi h a high indus ial mix
e ec (IME) o 6040.58, bu i also has a nega i e CE o
−
1756.20. This indica es ha
while heal hca e has g ow h po en ial, i is no cu en ly ully ealized. O he sec o s,
such as anspo a ion and adminis a i e se ices, show small posi i e compe i i e e ec s,
sugges ing a deg ee o di e si y; howe e , hese con ibu ions a e insu icien in es ablishing
he egion as a ully di e si ied economy.
The o e all decline in mos sec o s, including ag icul u e, manu ac u ing, e ail ade,
and educa ional se ices, cha ac e izes he New Ri e /G eenb ie Valley as a pe iph-
e al economy. The o al indus ies ca ego y e lec s a signi ican employmen decline o
−12,511 jobs
, indica ing a de e io a ing economic s uc u e. This scena io unde sco es
he need o policy in e en ions aimed a s imula ing g ow h and educing eliance on
declining indus ies.
4.4.4. Po omac Highlands Region
The employmen g ow h da a in Table 5highligh s he esul s o he shi -sha e analysis
conduc ed o he Po omac Highlands egion. This analysis can be u he in e p e ed using
Boude ille’s (1966) classi ica ion, which p o ides signi ican insigh s in o he economic
s uc u e o he egion.
Economies 2024,12, 290 22 o 26
The mining sec o shows a compe i i e e ec (CE) o 230.55, indica ing i s ole in he
egion’s economy, albei wi h modes g ow h. Howe e , he o e all nega i e g ow h in he
o al indus ies ca ego y (
−
1102 jobs) sugges s ha while mining may be a key indus y, i
is no s ong enough o classi y he egion as specialized. The p esence o declining sec o s
aises conce ns abou economic s abili y.
The heal hca e sec o exhibi s a no able indus ial mix e ec (IME) o 4018.63, coupled
wi h a posi i e CE o 2641.84, indica ing signi ican po en ial o g ow h. Addi ionally,
sec o s like scien i ic se ices, e ail ade, and accommoda ion show small bu posi i e
compe i i e e ec s, which sugges s a deg ee o economic di e si y. Howe e , he o e all
pe o mance o many sec o s is s ill weak, p e en ing he egion om being classi ied as
ully di e si ied.
The Po omac Highlands egion displays cha ac e is ics o a pe iphe al egion, e i-
denced by signi ican declines in c i ical indus ies such as manu ac u ing, e ail ade, and
educa ional se ices. The o e all decline in employmen ac oss many sec o s con ibu es o
he egion’s unde de eloped economic s uc u e. The o al indus ies ca ego y e lec s a
no able employmen loss o
−
8447.03 jobs, highligh ing he need o policy in e en ions
o s imula e g ow h and imp o e compe i i eness.
4.4.5. Moun ain Lakes Region
The employmen g ow h da a in Table 6highligh he esul s o he shi -sha e analysis
conduc ed o he Moun ain Lakes egion. This analysis can be u he in e p e ed using
Boude ille’s (1966) classi ica ion, which p o ides signi ican insigh s in o he economic
s uc u e o he egion.
The Moun ain Lakes egion does no exhibi clea specializa ion in any single indus y.
Al hough mining has his o ically been a key sec o , i shows a signi ican compe i i e e ec
(CE) o
−
768.92, indica ing a decline in i s economic con ibu ion. The o al employmen
loss ac oss all indus ies amoun s o 246 jobs, unde sco ing a b oade economic down u n.
The heal hca e sec o demons a es a signi ican indus ial mix e ec (IME) o 8703.77
and a posi i e CE o 2572.34, indica ing s ong g ow h po en ial. Addi ionally, sec o s like
scien i ic se ices and accommoda ion show posi i e compe i i e e ec s, e lec ing some
le el o di e si ica ion wi hin he economy. None heless, he o e all pe o mance o many
c i ical sec o s emains weak, p e en ing classi ica ion as ully di e si ied.
The Moun ain Lakes egion la gely displays cha ac e is ics o a pe iphe al economy, as
e idenced by subs an ial declines ac oss key indus ies such as manu ac u ing, e ail ade,
and educa ional se ices. The o al indus ies ca ego y e lec s a signi ican employmen
loss o
−
14,463.28 jobs, highligh ing he need o policy in e en ions o s imula e g ow h
and enhance economic esilience.
5. Conclusions and Policy Sugges ions
The p ima y aim o his s udy is o analyze employmen g ow h pa e ns ac oss
a ious sec o s in Wes Vi ginia o e he pas wo decades and assess hei implica ions
o long- e m economic de elopmen . By employing shi -sha e and loca ion quo ien
(
LQ
) analyses, his s udy iden i ies he key sec o s d i ing egional employmen and
e alua es hei cu en pe o mance. Addi ionally, i applies Boude ille’s amewo k o
be e unde s and egional economic s uc u es, highligh ing he impo ance o indus y
specializa ion and di e si ica ion. This app oach p o ides guidance o policymake s
in c a ing s a egies ha add ess he unique challenges aced by di e en egions. The
indings indica e a c i ical need o a ge ed policy in e en ions o p omo e economic
s abili y and g ow h ailo ed o he di e se condi ions ac oss Wes Vi ginia.
In he Mid-Ohio Valley, loca ion quo ien (
LQ
) alues indica e ha mining, manu ac-
u ing, and inance a e he mos concen a ed indus ies. Howe e , a subsequen shi -sha e
analysis, in o med by Boude ille’s classi ica ion, e eals ha he egion is p ima ily special-
ized in mining, wi h some di e si ica ion e iden in heal hca e and o he se ice sec o s.
Despi e his, a gene al decline ac oss mos indus ies, along wi h signi ican losses in
Economies 2024,12, 290 23 o 26
manu ac u ing and e ail, sugges s ha he Mid-Ohio Valley exhibi s cha ac e is ics o a
pe iphe al egion.
To s abilize and p omo e long- e m g ow h, economic di e si ica ion and a ge ed
policy in e en ions a e c ucial. Speci ically, in he mining sec o , implemen ing sus ainable
p ac ices and di e si ying ope a ions—such as ansi ioning o enewable ene gy o alue-
added p ocessing—can enhance economic s abili y and educe ulne abili y o ma ke
luc ua ions. This app oach no only secu es long- e m employmen oppo uni ies bu also
bene i s he local communi y.
In he Me o Valley egion, loca ion quo ien (
LQ
) alues indica e ha wholesale
ade, anspo a ion, and u ili ies a e he mos concen a ed sec o s. Howe e , shi -
sha e analysis e eals ha heal hca e and en e ainmen a e signi ican con ibu o s o
employmen g ow h. In o med by Boude ille’s classi ica ion, he analysis also shows ha
while he egion is specialized in mining, i possesses po en ial in heal hca e. None heless,
he decline ac oss c i ical sec o s sugges s ha he Me o Valley exhibi s cha ac e is ics o a
pe iphe al egion.
To s abilize he economy and p omo e long- e m g ow h, economic di e si ica ion
s a egies and a ge ed policy in e en ions a e essen ial. Policies should p io i ize enhanc-
ing in as uc u e and logis ics. S a egic in es men s in anspo a ion ne wo ks would
imp o e connec i i y, educe ope a ional cos s o businesses, and inc ease e iciency in
ade and dis ibu ion.
In he New Ri e /G eenb ie Valley egion, loca ion quo ien (
LQ
) alues indica e
ha ag icul u e and mining a e he mos concen a ed indus ies. Howe e , shi -sha e
analysis e eals ha he heal hca e sec o is a signi ican con ibu o o employmen g ow h.
U ilizing Boude ille’s classi ica ion alongside shi -sha e analysis, i becomes clea ha
while he egion specializes in mining, i aces challenges in di e si ica ion and has expe i-
enced subs an ial employmen losses ac oss a ious sec o s, e lec ing he cha ac e is ics
o a pe iphe al egion. To os e long- e m economic s abili y and g ow h, i is c ucial o
implemen economic di e si ica ion s a egies and a ge ed policy in e en ions.
The e o e, o p omo e long- e m economic s abili y and g ow h in he New Ri e /
G eenb ie Valley egion, es ablishing g an p og ams o low-in e es loans o small
business de elopmen is c ucial o encou age en ep eneu ship and di e si y he econ-
omy. Addi ionally, in es ing in ailo ed wo k o ce de elopmen p og ams, pa icula ly in
heal hca e and echnology, will equip he local wo k o ce wi h essen ial skills, enhancing
employabili y and os e ing a mo e esilien economy.
In he Po omac Highlands egion, loca ion quo ien (
LQ
) alues indica e ha ag icul-
u e and manu ac u ing a e he mos concen a ed indus ies. Shi -sha e analysis e eals
ha employmen g ow h has p ima ily been d i en by heal hca e, accommoda ion, and
scien i ic sec o s. Boude ille’s classi ica ion highligh s ha while he egion demons a es
some s eng hs in heal hca e, o e all employmen declines ac oss a ious sec o s sugges
cha ac e is ics o a pe iphe al economy. The combina ion o specialized ac i i ies in mining
and he po en ial o g ow h in heal hca e unde sco es he u gen need o economic di e -
si ica ion s a egies and a ge ed policy measu es o s abilize he economy and p omo e
long- e m g ow h.
To enhance esilience, mode nizing ag icul u al p ac ices h ough echnology and
sus ainabili y can inc ease p oduc i i y and c ea e mo e s able job oppo uni ies o a me s.
Addi ionally, suppo ing manu ac u ing by in es ing in in as uc u e and ad anced ech-
nologies would os e highly skilled jobs, boos ing economic ou pu and dec easing eliance
on a limi ed numbe o sec o s. Las ly, imp o ing educa ional oppo uni ies is c ucial o
equipping he wo k o ce wi h he skills needed o h i e in hese e ol ing indus ies.
In he Moun ain Lakes egion, loca ion quo ien (
LQ
) alues indica e ha scien i ic
se ices, heal hca e, and u ili ies a e he mos concen a ed indus ies. Shi -sha e analysis
e eals ha heal hca e, adminis a i e se ices, scien i ic sec o s, and accommoda ion ha e
signi ican ly con ibu ed o employmen g ow h. Acco ding o Boude ille’s classi ica ion,
while he Moun ain Lakes egion shows p omise in heal hca e and some cons uc ion
Economies 2024,12, 290 24 o 26
ac i i ies, he o e all decline in c i ical sec o s sugges s i exhibi s cha ac e is ics o a
pe iphe al economy. This combina ion o specialized ac i i ies and po en ial g ow h in
heal hca e unde sco es he need o a ge ed economic di e si ica ion s a egies and policy
measu es o s abilize he economy and os e long- e m g ow h.
To achie e hese goals, policymake s should ocus on enhancing in as uc u e and
p omo ing wo k o ce de elopmen . In es men s in heal hca e acili ies and echnological
ad ancemen s can s imula e job c ea ion and imp o e se ice deli e y. Fu he mo e, de el-
oping aining p og ams ailo ed o he needs o eme ging indus ies will equip he local
wo k o ce wi h he skills necessa y o u u e job oppo uni ies, ul ima ely con ibu ing o
a mo e esilien and di e si ied economy.
This s udy has ce ain limi a ions. I s analysis is p ima ily based on loca ion quo ien
(
LQ
) and shi -sha e me hodologies, which may no ully e lec he dynamic na u e o
egional economies. Addi ionally,
LQ
and shi -sha e analyses do no accoun o ex e nal
ac o s, such as ma ke luc ua ions o policy changes, ha can signi ican ly impac sec o
pe o mance. The emphasis on speci ic sec o s may also o e look he in e connec edness o
he indus ies, po en ially esul ing in a agmen ed unde s anding o he egional economy.
Fu u e esea ch could s eng hen he indings by in eg a ing addi ional economic
indica o s and quali a i e assessmen s, p o iding a mo e comp ehensi e iew o egional
dynamics. Inco po a ing spa ial analysis echniques and examining sec o in e ac ions
could o e deepe insigh s in o he d i e s o economic g ow h. Mo eo e , conduc ing
longi udinal s udies ha ack changes o e ime would enhance ou unde s anding o
how policies and ex e nal condi ions a ec employmen pa e ns, leading o mo e e ec i e,
ailo ed policy ecommenda ions o each egion.
Funding: This esea ch was suppo ed in pa by he In amu al Resea ch P og am o he U.S. Depa -
men o Ag icul u e, Na ional Ins i u e o Food and Ag icul u e, E ans-Allen, accession #7003783.
Ins i u ional Re iew Boa d S a emen : No applicable.
In o med Consen S a emen : No applicable.
Da a A ailabili y S a emen : All da a a e included in he a icle.
Con lic s o In e es : The au ho decla es no con lic o in e es .
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