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California's Exports and the 2004 Overseas Office Closures

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Author Info
Andrew J. Cassey () (School of Economic Sciences, Washington State University)

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Abstract

Because of an endogeneity problem, estimating the impact of state export promotion programs on exports is difficult. The 2003 California budget crisis provides a natural experiment, circumventing this problem. Due to the crisis, California closed all 12 overseas oces on January 1, 2004. Applying the differences-in-differences estimator to a sample of 44 countries over eight years yields mixed results. The estimated 0.02% increase in exports if the offices remained open is not robust. Therefore, any impact of California's overseas offices on exports is roughly the size of the largest random fluctuations.

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File URL: http://www.ses.wsu.edu/PDFFiles/WorkingPapers/Cassey/CalifExports_WP2008-28.pdf
File Format: application/pdf
File Function: First version, 2008
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Publisher Info
Paper provided by School of Economic Sciences, Washington State University in its series Working Papers with number 2008-28.

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Length: 26 pages
Date of creation: Dec 2008
Date of revision:
Handle: RePEc:wsu:wpaper:cassey-1

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Related research
Keywords: international trade; exports; promotion; overseas offices; differences-in-differences;

Other versions of this item:

Find related papers by JEL classification:
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
O24 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March. [Downloadable!]
    Other versions:
  2. Cassey, Andrew, 2006. "State export data: origin of movement vs. origin of production," MPRA Paper 3352, University Library of Munich, Germany. [Downloadable!]
  3. Wilkinson, Timothy J. & Brouthers, Lance Eliot, 2000. "An Evaluation of State Sponsored Promotion Programs," Journal of Business Research, Elsevier, vol. 47(3), pages 229-236, March. [Downloadable!] (restricted)
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This page was last updated on 2009-10-15.

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