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California's Exports and the 2004 Overseas Office Closures

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  • 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
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    File URL: http://faculty.ses.wsu.edu/WorkingPapers/Cassey/CalifExports_WP2008-28.pdf
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    References listed on IDEAS

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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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    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

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