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Assignment #1 Economic Base Analysis In Activity 3-2 you were provided with the opportunity to assess and analyze several different types of economic development profiles. In fact, many economic development organizations refer to the profile by a different name (community profile, economic development profile, site location profile). The goal of these profiles is to "showcase" the community or region to potential and existing residents and or businesses). Each data profile should have a purpose. The purpose of this assignment is to provide insight into how economic development data can assist in economic development planning. In particular, data can be used to provide intelligence into an economic development strategy or plan. It is important that you have read Chapter 6 in the Planning Local Economic Development textbook. In this assignment, you will visit several government websites to secure information which be utilized to complete the following analysis: Location Quotients (LQ) and shift-share analysis (proportional shifts and differential shifts). Please note that on page 198 of the Planning LED textbook there is an error in the formula at the bottom of the table for calculating Differential Shift. It should say C - F not F - C. The calculations in the table are correct, but the formula shown is not. Step 1: Research - Location Quotients Spend some time browsing the Internet for Statistics Canada and employment data. Statistics Canada provides one of the most comprehensive data sites in the country. The labour force survey provides a data table outlining employment by industry (or NAICS codes National American Industry Classification System). For the purposes of this illustration, we will use the following two sectors: i. Transportation and Warehousing and ii. Construction. Now spend some time searching the Internet for employment data in Alberta. This is the government of Alberta's employment website. This website provides information on employment data for the province of Alberta. Sample data has been provided for you in Module 3 on the "student guide for economic development analysis", which is an Excel spreadsheet that you will be required to complete and submit for this assignment. The spreadsheet can be found under Assignment #1 in D2L. There are several videos designed to provide you with support to complete the economic base analysis. Video 1 is located under Learning Activities and suggests you locate provincial and national employment data from the two sites referred to above (Statistics Canada and Employment Data in Alberta). You should spend some time browsing these websites so you can appreciate the depth of data provided; however, for the purposes of this assignment, the data will be provided to you in the student guide for economic development analysis Excel spreadsheet (file provided in the Assignments area). MUNICIPAL STRUCTURE AND GOVERNANCE 2 School of Business 2017, Southern Alberta Institute of Technology Video 2 provides a more detailed explanation on how to complete the location quotient calculations. Using the video, and the knowledge you have gained through the textbook, complete the transportation and construction location quotients, for the first and second point in time. Your results should be put into the student guide for economic development analysis Excel spreadsheet in cell B10, B11, B13 and B14. The formula for location quotients can be found on page 183 and 184 of the LED textbook and is also provided below: LQ = ( ) ( ) Step 2: Research - Shift-Share Analysis The second method of analyzing an economy is referred to as shift-share analysis. This analysis is dynamic because it compares changes over time, rather than looking at one point in time. The shift-share analysis is made up of the following components: shift (growth) in the national economy, proportional shift and differential shift. These terms are economic names for very simple calculations which allow you to compare the growth of the national economy with growth in sectors of the economy at a national and local level. Video 3 provides a more detailed explanation of the shift share analysis for transportation and warehousing. The overall shift in the economy is simply the percentage of growth or percentage of decline in the larger reference economy (in this example, the larger reference economy is Canada and the shift includes all industries in Canadian economy. For example, if the Canadian economy grew by 5%, we would say there has been a 5% shift in the economy. In order to complete the proportional and differential shift you will need to calculate the percentage change in the transportation industry for both Alberta (D3) and Canada (G3) as well as the construction industry for both Alberta (cell D4) and Canada (cell G4). Video 3 provides you with an explanation of how to calculate the percentage change in employment in the transportation and warehousing industry in Alberta and Canada. Video 3 also provides detail on how to calculate the proportional shift in the economy (the proportional shift is the relative change of a particular industry in the national economy compared to the relative change in the total of all industries in the national economy). For example, if the overall shift (overall growth) in the Canadian economy is 5%, and construction industry in Canada grew by 20%, the proportional shift in the construction industry would be 15% (20% minus 5%). This means we would expect construction to contribute more growth to our national economy. After watching Video 3, calculate the proportional shift for transportation and construction. Put your findings into the Excel spreadsheet in cells I3 and I4. Video 3 also provides detail on how to calculate the differential shift. The differential shift looks at the difference in the rate of growth or decline in a local industry relative to the rate of growth or decline in the same industry nationally. For example, say the construction industry in Canada grew by 20%; however, the construction industry in Alberta only grew by 8%, we would say the differential shift in construction is negative 12% (8% minus 20%). In other words, growth in the construction industry in Alberta is lagging behind growth in the construction industry in the national economy. Put your findings into the Excel spreadsheet in cells J3 and J4.

MUNICIPAL STRUCTURE AND GOVERNANCE 3 School of Business 2017, Southern Alberta Institute of Technology Step 3: Submit You have been asked to conduct a variety of economic development analysis on the student guide to economic analysis Excel spreadsheet. Once you have completed the calculations, and answered the question below, submit your completed spreadsheet to the D2L Assignment area.

At the bottom of your spreadsheet, answer the following questions: 1. Based on your calculation of LQ, should Alberta be pursuing either of these two industries as part of its economic development strategy? Why or why not? 2. What does the shift share analysis tell you about the two industries (remember shift share consists of two additional analysis, proportional shift and differential shift)? 3. What challenges can you see for smaller communities and regions in undertaking this type of economic development analysis?