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State Trade Missions

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  • Andrew J. Cassey

    ()
    (School of Economic Sciences, Washington State University)

Abstract

From 1997-2006, U.S. state governors led more than ve hundred trade missions to foreign countries. Trade missions are potentially a form of public investment in export promotion. I create a theory of public investment by introducing government to a Melitz (2003)-Chaney (2008) trade model. Controlling for state and country characteristics, the model predicts a positive relationship between missions and exports by destination. I create a data set on trade missions and match it with state export data, both with destination information. I estimate this relationship in the data, and reject the hypothesis that missions are to random destinations.

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File URL: http://faculty.ses.wsu.edu/WorkingPapers/Cassey/WP2010-13.pdf
File Function: First version, 2010
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Bibliographic Info

Paper provided by School of Economic Sciences, Washington State University in its series Working Papers with number 2010-13.

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Length: 31 pages
Date of creation: Aug 2010
Date of revision:
Handle: RePEc:wsu:wpaper:cassey-5

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Keywords: international trade; exports; states; missions; investment;

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  1. Costas Arkolakis, 2008. "Market Penetration Costs and the New Consumers Margin in International Trade," NBER Working Papers 14214, National Bureau of Economic Research, Inc.
  2. Volker Nitsch, 2007. "State Visits and International Trade," The World Economy, Wiley Blackwell, vol. 30(12), pages 1797-1816, December.
  3. Thomas Chaney, 2008. "Distorted Gravity: The Intensive and Extensive Margins of International Trade," American Economic Review, American Economic Association, vol. 98(4), pages 1707-21, September.
  4. Rubinstein, Yona & Helpman, Elhanan & Melitz, Marc, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," Scholarly Articles 3228230, Harvard University Department of Economics.
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