An Examination of State Foreign Export Promotion and Manufacturing Exports*

Abstract

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.

Who Benefits from State and Local Economic Development Policies?

“…First, in some cases the programs are small compared to the areas whose growth they are supposed to affect (Luger 1987;McHone 1984;Coughlin and Cartwright 1987;O'hUallachain and Satterthwaite 1990;Ambrosius 1989;and Feiock 1987). l For example, in Coughlin and Cartwright's study, state export promotion programs are minuscule compared to the size of any state's economy.…”

Export promotion programs: Their impact on companies’ internationalization performance and competitiveness

“…More specifically, in an analysis of 367 firms that had participated in sponsored trade shows, Seringhaus and Rosson (1991) concluded that this program resulted in more than $350 million in sales for participating companies, and that the return for each dollar of public expenditure was $28. Coughlin and Cartwright (1987) estimated an increase in exports of $432 for each dollar spent in export assistance.…”

Impact of Foreign Direct Investment on Trade of African Countries

“…The lagged value of exports/import is included on the right hand side of the model because of the significant relationships between past and future export performance. This procedure is commonly used in economic analyses where there may be a strong tendency for past economic trends to influence future performance (Coughlin & Cartwright, 1987) hence included as independent variable in both export and import specification.…”