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The increasing importance of proximity for exports from U.S. states

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  • Cletus C. Coughlin

Abstract

Changes in income, trade policies, transportation costs, technology, and many other variables affect the geographic pattern of international trade flows. This paper focuses on the changing geography of merchandise exports from individual U.S. states to foreign countries. Generally speaking, the geographic distribution of state exports has changed so that trade has become more intense with nearby countries relative to distant countries. All states, however, did not experience similar changes. As measured by the distance of trade, which is the average distance that a state?s international trade is transported, 40 states experienced a declining distance of trade, while 11 states (including Washington, D.C.) experienced an increasing distance of trade. Evidence, albeit far from definitive, suggests that declining transportation costs over land, the implementation of the North American Free Trade Agreement, and faster income growth by nearby trading partners relative to distant partners have contributed to the changing geography of state exports.

Suggested Citation

  • Cletus C. Coughlin, 2004. "The increasing importance of proximity for exports from U.S. states," Review, Federal Reserve Bank of St. Louis, vol. 86(Nov), pages 1-18.
    • Handle: RePEc:fip:fedlrv:y:2004:i:nov:p:1-18:n:v.86no.6
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    Citations

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    Cited by:

    1. Cletus C. Coughlin & Dennis Novy, 2013. "Is the International Border Effect Larger than the Domestic Border Effect? Evidence from US Trade," CESifo Economic Studies, CESifo Group, vol. 59(2), pages 249-276, June.
    2. Noblet, Sandrine & Belgodere, Antoine, 2010. "Coordination cost and the distance puzzle," MPRA Paper 27502, University Library of Munich, Germany.
    3. Cletus C. Coughlin & Dennis Novy, 2021. "Estimating Border Effects: The Impact Of Spatial Aggregation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 62(4), pages 1453-1487, November.
    4. Chad R. Wilkerson & Megan D. Williams, 2010. "The export potential of Tenth District states," Economic Review, Federal Reserve Bank of Kansas City, vol. 95(Q III), pages 93-114.
    5. Thi Mai Phuong, Chu & Tu, Thuy Anh, 2014. "On the border effect in the Regional Comprehensive Economic Partnership (RCEP)," Papers 910, World Trade Institute.
    6. Richard V. Adkisson & Eduardo Saucedo, 2010. "Merchandise Exports and Job Quality, Evidence From the States," Economic Development Quarterly, , vol. 24(3), pages 231-242, August.
    7. Andrew J. Cassey, 2010. "Analyzing the export flow from Texas to Mexico," Staff Papers, Federal Reserve Bank of Dallas, issue Oct.
    8. Novy, Dennis, 2006. "Is the Iceberg Melting Less Quickly? International Trade Costs after World War II," Economic Research Papers 269734, University of Warwick - Department of Economics.

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    Keywords

    Exports; International trade;

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