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The Location of U.S. States' Overseas Office

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Author Info
Andrew J. Cassey () (School of Economic Sciences, Washington State University)

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Abstract

Forty U.S. states operated an overseas office in 2002. Treating overseas offices as sales offices, I modify Holmes (2005) so oces facilitate exports by reducing the transaction cost of selling abroad. From theory, states operate an office if aggregate savings outweigh operating costs. Exploiting the differences in where states locate offices in the data, and controlling for aggregate characteristics, I estimate the impact of exports on the probability of an office existing. In addition, I find the average state savings from an office is 0.005%--0.009% of exports with a cut-off threshold of $1.0--1.4 billion.

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File URL: http://www.ses.wsu.edu/PDFFiles/WorkingPapers/Cassey/OverseasOffices_WP2009-10.pdf
File Format: application/pdf
File Function: First version, 2009
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Publisher Info
Paper provided by School of Economic Sciences, Washington State University in its series Working Papers with number 2009-10.

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Length: 23 pages
Date of creation: May 2009
Date of revision:
Handle: RePEc:wsu:wpaper:cassey-2

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Related research
Keywords: international trade; exports; states; overseas oces; investment;

Find related papers by 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
O24 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
R10 - Urban, Rural, and Regional Economics - - General Regional Economics - - - General

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This page was last updated on 2009-11-23.

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