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California'S Exports And The 2004 Overseas Office Closures

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  • ANDREW J. CASSEY

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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Suggested Citation

  • Andrew J. Cassey, 2012. "California'S Exports And The 2004 Overseas Office Closures," Economic Inquiry, Western Economic Association International, vol. 50(3), pages 641-651, July.
    • Handle: RePEc:bla:ecinqu:v:50:y:2012:i:3:p:641-651
    DOI: j.1465-7295.2010.00337.x
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    Cited by:

    1. (ed.), 0. "Research Handbook on Economic Diplomacy," Books, Edward Elgar Publishing, number 16053, June.
    2. Andrew J. Cassey, 2010. "Analyzing the export flow from Texas to Mexico," Staff Papers, Federal Reserve Bank of Dallas, issue Oct.
    3. David J. Kuenzel, 2019. "Do trade flows respond to nudges? Evidence from the WTO’s Trade Policy Review Mechanism," Review of International Economics, Wiley Blackwell, vol. 27(3), pages 735-764, August.

    More about this item

    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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