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

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Author Info

  • 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.

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Bibliographic Info

Article provided by Federal Reserve Bank of St. Louis in its journal Review.

Volume (Year): (2004)
Issue (Month): Nov ()
Pages: 1-18

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Handle: RePEc:fip:fedlrv:y:2004:i:nov:p:1-18:n:v.86no.6

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Related research

Keywords: Exports ; International trade;

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Cited by:
  1. Cletus C. Coughlin & Dennis Novy, 2012. "Is the International Border Effect Larger than the Domestic Border Effect? Evidence from U.S. Trade," CEP Discussion Papers dp1162, Centre for Economic Performance, LSE.
  2. Andrew J. Cassey, 2010. "Analyzing the export flow from Texas to Mexico," Staff Papers, Federal Reserve Bank of Dallas, issue Oct.
  3. Noblet, Sandrine & Belgodere, Antoine, 2010. "Coordination cost and the distance puzzle," MPRA Paper 27502, University Library of Munich, Germany.
  4. Chad R. Wilkerson & Megan D. Williams, 2010. "The export potential of Tenth District states," Economic Review, Federal Reserve Bank of Kansas City, issue Q III, pages 93-114.
  5. Novy, Dennis, 2006. "Is the Iceberg Melting Less Quickly? International Trade Costs after World War II," The Warwick Economics Research Paper Series (TWERPS) 764, University of Warwick, Department of Economics.

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