Abstract: Aiming at that the classical shift-share analysis model not including the interaction among regions, spatially extended shift-share analysis model was put forward and applied abroad, but domestic applications were still limited to the classical model. The paper introduces how to definite a spatial weight matrix to express the spatial interactions among regions and introduces the widely used spatial shift-share analysis model, then does some comparative demonstration analysis using the two models. The results show that the secondary and tertiary industries of Jiangsu Province has strong competitiveness nationwide, and the competitive effect contributed more than the industry-mix effect to the growth of the economics gross and the three industries. But the three industries of Jiangsu showed no competitiveness against its neighbors and the neighbors brought positive impact to the economy growth of Jiangsu. However, Jiangsu failed to take advantage of this impact ant thus resulted in some theoretical economic loss.

Key words: shift-share analysis, classical shift-share analysis model, spatial weight matrix, spatial shift-share analysis model