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California's Exports and the 2004 Overseas Office Closures

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Author Info

  • 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.

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File URL: http://faculty.ses.wsu.edu/WorkingPapers/Cassey/CalifExports_WP2008-28.pdf
File Function: First version, 2008
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Bibliographic Info

Paper provided by School of Economic Sciences, Washington State University in its series Working Papers with number 2008-28.

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Length: 26 pages
Date of creation: Dec 2008
Date of revision:
Handle: RePEc:wsu:wpaper:cassey-1

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Web page: http://faculty.ses.wsu.edu/
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Keywords: international trade; exports; promotion; overseas offices; differences-in-differences;

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References

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  1. Volker Nitsch, 2007. "State Visits and International Trade," The World Economy, Wiley Blackwell, vol. 30(12), pages 1797-1816, December.
  2. Cassey, Andrew, 2006. "State export data: origin of movement vs. origin of production," MPRA Paper 3352, University Library of Munich, Germany.
  3. James E. Anderson & Eric van Wincoop, 2001. "Gravity with Gravitas: A Solution to the Border Puzzle," NBER Working Papers 8079, National Bureau of Economic Research, Inc.
  4. 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.
  5. Tibor Besedes & Thomas Prusa, 2006. "Ins, outs, and the duration of trade," Canadian Journal of Economics, Canadian Economics Association, vol. 39(1), pages 266-295, February.
  6. Lederman, Daniel & Olarreaga, Marcelo & Payton, Lucy, 2006. "Export Promotion Agencies: What Works and What Doesn't," CEPR Discussion Papers 5810, C.E.P.R. Discussion Papers.
  7. 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.
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Cited by:
  1. Andrew J. Cassey, 2010. "Analyzing the export flow from Texas to Mexico," Staff Papers, Federal Reserve Bank of Dallas, issue Oct.

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