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Rethinking the National Export Initiative

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  • Caroline Freund

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    (Peterson Institute for International Economics)

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    Abstract

    Four years ago, President Barack Obama set the goal of doubling exports within five years and creating 2 million new export-related jobs. The strategy put in place, however, has failed to achieve superior growth. Freund argues that the emphasis on small and medium enterprises in the National Export Initiative, while attractive, was misguided and recommends a specific set of policies that the administration should concentrate on to boost exports. An export boom requires a system that encourages the largest firms to invest and expand exports and facilitates the rapid growth of new highly efficient firms so we get more export superstars. She recommends (1) maintaining a competitive exchange rate, (2) US leadership on market access trade agreements, and (3) improving the business climate, including training and migration to fill the skills gap, encouraging investment and innovation, more stable energy prices, and championing trade openness.

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    Bibliographic Info

    Paper provided by Peterson Institute for International Economics in its series Policy Briefs with number PB14-7.

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    Date of creation: Jul 2014
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    Handle: RePEc:iie:pbrief:pb14-7

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    1. Pinelopi K. Goldberg & Amit Khandelwal & Nina Pavcnik & Petia Topalova, 2008. "Imported Intermediate Inputs and Domestic Product Growth: Evidence from India," NBER Working Papers 14416, National Bureau of Economic Research, Inc.
    2. Freund, Caroline & Pierola, Martha Denisse, 2012. "Export surges," Journal of Development Economics, Elsevier, vol. 97(2), pages 387-395.
    3. Xavier Gabaix, 2011. "The Granular Origins of Aggregate Fluctuations," Econometrica, Econometric Society, vol. 79(3), pages 733-772, 05.
    4. Chang-Tai Hsieh & Peter J. Klenow, 2012. "The Life Cycle of Plants in India and Mexico," NBER Working Papers 18133, National Bureau of Economic Research, Inc.
    5. John Haltiwanger & Ron S. Jarmin & Javier Miranda, 2010. "Who Creates Jobs? Small vs. Large vs. Young," Working Papers 10-17, Center for Economic Studies, U.S. Census Bureau.
    6. Amiti, Mary & Konings, Jozef, 2005. "Trade Liberalization, Intermediate Inputs and Productivity: Evidence from Indonesia," CEPR Discussion Papers 5104, C.E.P.R. Discussion Papers.
    7. William R. Cline, 2013. "Estimates of Fundamental Equilibrium Exchange Rates, May 2013," Policy Briefs PB13-15, Peterson Institute for International Economics.
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