IDEAS home Printed from https://ideas.repec.org/p/wsu/wpaper/cassey-1.html
   My bibliography  Save this paper

California's Exports and the 2004 Overseas Office Closures

Author

Listed:
  • Andrew J. Cassey

    (School of Economic Sciences, Washington State University)

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.

Suggested Citation

  • Andrew J. Cassey, 2008. "California's Exports and the 2004 Overseas Office Closures," Working Papers 2008-28, School of Economic Sciences, Washington State University.
    • Handle: RePEc:wsu:wpaper:cassey-1
    as

    Download full text from publisher

    File URL: http://faculty.ses.wsu.edu/WorkingPapers/Cassey/CalifExports_WP2008-28.pdf
    File Function: First version, 2008
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Keith Head & John Ries, 2010. "Do trade missions increase trade?," Canadian Journal of Economics, Canadian Economics Association, vol. 43(3), pages 754-775, August.
    2. 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.
    3. Olarreaga, Marcelo & Lederman, Daniel & Payton, Lucy, 2006. "Export Promotion Agencies: What Works and What Doesn't," CEPR Discussion Papers 5810, C.E.P.R. Discussion Papers.
    4. Tibor Besedeš & Thomas J. Prusa, 2006. "Ins, outs, and the duration of trade," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 39(1), pages 266-295, February.
    5. Stephen G. Donald & Kevin Lang, 2007. "Inference with Difference-in-Differences and Other Panel Data," The Review of Economics and Statistics, MIT Press, vol. 89(2), pages 221-233, May.
    6. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    7. Volker Nitsch, 2007. "State Visits and International Trade," The World Economy, Wiley Blackwell, vol. 30(12), pages 1797-1816, December.
    8. Guenther Kress & Randi Miller & Gus Koehler, 2005. "The Termination of State-Run International Trade Programs in California: Perspectives on Contributing Factors and Future Policy Options," Public Organization Review, Springer, vol. 5(2), pages 139-155, June.
    9. Cassey, Andrew, 2006. "State export data: origin of movement vs. origin of production," MPRA Paper 3352, University Library of Munich, Germany.
    10. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andrew J. Cassey, 2010. "Analyzing the export flow from Texas to Mexico," Staff Papers, Federal Reserve Bank of Dallas, issue Oct.
    2. David J. Kuenzel, 2019. "Do trade flows respond to nudges? Evidence from the WTO’s Trade Policy Review Mechanism," Review of International Economics, Wiley Blackwell, vol. 27(3), pages 735-764, August.
    3. (ed.), 0. "Research Handbook on Economic Diplomacy," Books, Edward Elgar Publishing, number 16053.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. (ed.), 0. "Research Handbook on Economic Diplomacy," Books, Edward Elgar Publishing, number 16053.
    2. Harold Creusen & Arjan Lejour, 2011. "Uncertainty and the export decisions of Dutch firms," FIW Working Paper series 069, FIW.
    3. Peter A.G. van Bergeijk, 2009. "Economic Diplomacy and the Geography of International Trade," Books, Edward Elgar Publishing, number 13518.
    4. Arjan Lejour & harold creusen, 2011. "Uncertainty and the export decisions of Dutch firms," CPB Discussion Paper 183, CPB Netherlands Bureau for Economic Policy Analysis.
    5. Christian Volpe Martincus & Jerónimo Carballo, 2010. "Is Export Promotion Effective in Developing Countries? Firm-Level Evidence on the Intensive and Extensive Margins of Exports," IDB Publications (Working Papers) 36763, Inter-American Development Bank.
    6. Christian Volpe Martincus & Jeronimo Carballo & Andres Gallo, 2011. "The impact of export promotion institutions on trade: is it the intensive or the extensive margin?," Applied Economics Letters, Taylor & Francis Journals, vol. 18(2), pages 127-132.
    7. Faqin Lin & Wenshou Yan & Xiaosong Wang, 2017. "The impact of Africa-China's diplomatic visits on bilateral trade," Scottish Journal of Political Economy, Scottish Economic Society, vol. 64(3), pages 310-326, July.
    8. Emmanuelle Lavallée & Julie Lochard, 2022. "International trade and face-to-face diplomacy," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 158(4), pages 987-1010, November.
    9. Sylvanus Kwaku Afesorgbor, 2018. "Economic diplomacy in Africa: the impact of regional integration versusbilateral diplomacy on bilateral trade," Chapters, in: Research Handbook on Economic Diplomacy, chapter 20, pages 326-346, Edward Elgar Publishing.
    10. Fuchs, Andreas & Klann, Nils-Hendrik, 2013. "Paying a visit: The Dalai Lama effect on international trade," Journal of International Economics, Elsevier, vol. 91(1), pages 164-177.
    11. Christian Volpe Martincus & Antoni Estevadeordal & Andrés Gallo & Jessica Luna, 2010. "Information barriers, export promotion institutions, and the extensive margin of trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(1), pages 91-111, April.
    12. Josep M Vilarrubia & Rubén Segura-Cayuela, 2008. "Uncertainty and entry into export markets," 2008 Meeting Papers 661, Society for Economic Dynamics.
    13. Volpe Martincus, Christian & Carballo, Jerónimo, 2008. "Is export promotion effective in developing countries? Firm-level evidence on the intensive and the extensive margins of exports," Journal of International Economics, Elsevier, vol. 76(1), pages 89-106, September.
    14. Christian Volpe Martincus & Antoni Estevadeordal & Andrés Gallo & Jessica Luna, 2010. "Information Barriers, Export Promotion Institutions, and the Extensive Margin of Trade," IDB Publications (Working Papers) 39358, Inter-American Development Bank.
    15. Yaying Liu & Jin Chen & Churen Sun, 2022. "Partnership Diplomacy and China’s Exports," Sustainability, MDPI, vol. 14(19), pages 1-22, September.
    16. Mahmut Yasar & David Lisner & Roderick Rejesus, 2012. "Bilateral trade impacts of temporary foreign visitor policy," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(3), pages 501-521, September.
    17. Yakop, M. & van Bergeijk, P.A.G., 2009. "The weight of economic and commercial diplomacy," ISS Working Papers - General Series 18715, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    18. Christian Volpe Martincus & Jeronimo Carballo & Andres Gallo, 2011. "The impact of export promotion institutions on trade: is it the intensive or the extensive margin?," Applied Economics Letters, Taylor & Francis Journals, vol. 18(2), pages 127-132.
    19. Didier, Laurent, 2018. "Economic diplomacy: The “one–China policy” effect on trade," China Economic Review, Elsevier, vol. 48(C), pages 223-243.
    20. Bagir, Yusuf, 2017. "Impact of the Presence of Foreign Missions on Trade: Evidence from Turkey," MPRA Paper 80845, University Library of Munich, Germany.

    More about this item

    Keywords

    international trade; exports; promotion; overseas offices; differences-in-differences;
    All these keywords.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsu:wpaper:cassey-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Danielle Engelhardt (email available below). General contact details of provider: https://edirc.repec.org/data/ecwsuus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.