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The Location of US States' Overseas Offices

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  • Andrew J. Cassey

Abstract

Forty US states operated an overseas office in 2002. Treating overseas offices as sales offices, the model assumes offices facilitate exports by reducing the transaction cost of selling abroad. From theory, states operate an office if aggregate savings outweigh operating costs. Exploiting the differences in where states locate offices in the data, and controlling for aggregate characteristics, the paper estimates the impact of exports on the probability of an office existing. In addition, the average state savings from an office is 0.04–0.10% of exports, with a cut-off threshold of US$850 million.

Suggested Citation

  • Andrew J. Cassey, 2014. "The Location of US States' Overseas Offices," Review of International Economics, Wiley Blackwell, vol. 22(2), pages 310-325, May.
    • Handle: RePEc:bla:reviec:v:22:y:2014:i:2:p:310-325
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    File URL: http://hdl.handle.net/10.1111/roie.12109
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    Cited by:

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    4. Ebadullah Akbari & Samad Aali & Yaghoub Alavi Matin & Morteza Mahmoudzadeh, 2021. "Evaluating Export Incentive Programs' Performance of Trade Promotion Organization of Iran on Export Performance: The Mediating Role of Exporting Companies' Marketing Implementation Capabilities and th," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 11(4), pages 3-23.
    5. Maria Inês Veloso Ferreira & Aurora A.C. Teixeira, 2011. "Organizational Characteristics and Performance of Export Promotion Agencies: Portugal and Ireland compared," FEP Working Papers 424, Universidade do Porto, Faculdade de Economia do Porto.
    6. Ahmed Boutorat & Loe Franssen, 2023. "Economic missions and firm internationalization: evidence from the Netherlands," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 159(3), pages 787-826, August.
    7. Broocks, Annette & Van Biesebroeck, Johannes, 2017. "The impact of export promotion on export market entry," Journal of International Economics, Elsevier, vol. 107(C), pages 19-33.
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    9. Allan Sørensen, 2020. "Export promotion and intra‐industry reallocations," Review of International Economics, Wiley Blackwell, vol. 28(2), pages 303-319, May.
    10. Wu, Chen & Rogers, Cynthia L., 2017. "One Size Does Not Fit All: Foreign Direct Investment Promotion Policies across US States," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 48(1), April.
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    More about this item

    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, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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