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The Location of U.S. States' Overseas Office

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  • Andrew J. Cassey

    (School of Economic Sciences, Washington State University)

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.

Suggested Citation

  • Andrew J. Cassey, 2009. "The Location of U.S. States' Overseas Office," Working Papers 2009-10, School of Economic Sciences, Washington State University.
    • Handle: RePEc:wsu:wpaper:cassey-2
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    File URL: http://faculty.ses.wsu.edu/WorkingPapers/Cassey/OverseasOffices_WP2009-10.pdf
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    References listed on IDEAS

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    Cited by:

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    3. Broocks, Annette & Van Biesebroeck, Johannes, 2017. "The impact of export promotion on export market entry," Journal of International Economics, Elsevier, vol. 107(C), pages 19-33.
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    7. Amir Maghssudipour & Annalisa Caloffi & Marco Bellandi & Letizia Donati, 2022. "Language as a regional driver of the trade of place-sensitive products: The case of made-in-Italy goods," Working Papers - Economics wp2022_09.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    8. Ebadullah Akbari & Samad Aali & Yaghoub Alavi Matin & Morteza Mahmoudzadeh, 2021. "Evaluating Export Incentive Programs' Performance of Trade Promotion Organization of Iran on Export Performance: The Mediating Role of Exporting Companies' Marketing Implementation Capabilities and th," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 11(4), pages 3-23.
    9. Maria Inês Veloso Ferreira & Aurora A.C. Teixeira, 2011. "Organizational Characteristics and Performance of Export Promotion Agencies: Portugal and Ireland compared," FEP Working Papers 424, Universidade do Porto, Faculdade de Economia do Porto.
    10. Ahmed Boutorat & Loe Franssen, 2023. "Economic missions and firm internationalization: evidence from the Netherlands," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 159(3), pages 787-826, August.

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    More about this item

    Keywords

    international trade; exports; states; overseas oces; investment;
    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
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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