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California'S Exports And The 2004 Overseas Office Closures

  • ANDREW J. CASSEY

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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File URL: http://hdl.handle.net/10.1111/j.1465-7295.2010.00337.x
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Article provided by Western Economic Association International in its journal Economic Inquiry.

Volume (Year): 50 (2012)
Issue (Month): 3 (07)
Pages: 641-651

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Handle: RePEc:bla:ecinqu:v:50:y:2012:i:3:p:641-651
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  1. Nitsch, Volker, 2007. "State visits and international trade," Discussion Papers 2007/3, Free University Berlin, School of Business & Economics.
  2. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2002. "How Much Should We Trust Differences-in-Differences Estimates?," NBER Working Papers 8841, National Bureau of Economic Research, Inc.
  3. Tibor Besedes & Thomas Prusa, 2006. "Ins, outs, and the duration of trade," Canadian Journal of Economics, Canadian Economics Association, vol. 39(1), pages 266-295, February.
  4. James E. Anderson & Eric van Wincoop, 2000. "Gravity with Gravitas: A Solution to the Border Puzzle," Boston College Working Papers in Economics 485, Boston College Department of Economics.
  5. Lederman, Daniel & Olarreaga, Marcelo & Payton, Lucy, 2006. "Export promotion agencies : what works and what doesn't," Policy Research Working Paper Series 4044, The World Bank.
  6. Cassey, Andrew, 2006. "State export data: origin of movement vs. origin of production," MPRA Paper 3352, University Library of Munich, Germany.
  7. Stephen G. Donald & Kevin Lang, 2007. "Inference with Difference-in-Differences and Other Panel Data," The Review of Economics and Statistics, MIT Press, vol. 89(2), pages 221-233, May.
  8. Wilkinson, Timothy J. & Brouthers, Lance Eliot, 2000. "An Evaluation of State Sponsored Promotion Programs," Journal of Business Research, Elsevier, vol. 47(3), pages 229-236, March.
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