As a means of promoting economic development state governments are increasing their levels of support for export promotion; however, there has been virtually no statistical analysis of the effects of the state export promotion expenditures. The present study specifies and estimates a cross-section model in order to quantify the relationship between state export promotion and exports. The empirical analysis allows for the calculation of the export promotion elasticity of exports on a state basis. Two conclusions are that the rationale supporting export promotion expenditures is supported empirically and that there is much diversity among states for the estimated elasticity.

Exports assist economic development via the creation of jobs. The present study specifies and estimates a time-series model in order to quantify relationships between state exports and employment. The export elasticities of employment in both the short run and the long run are estimated on a state basis. The results suggest that state government policies that affect state exports will ultimately affect state employment. Further, the results indicate there is much diversity among states for the relationships estimated.

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