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The International Exports of American States: An Investigation for Local Spatial Patterns

  • Wu, Chen

    (Black Hills State University)

  • Nsiah, Christian

    (Black Hills State University)

  • Mayer, Walter J.

    (University of Mississippi)

The new economic geography literature has created awareness that geographic locations influence each other. Whereas the effect of proximity between exporting and importing units has been investigated to a great extent, the possible impact that neighboring economic units can have on each other’s trade with other economic units has not received much attention. Neglecting spatial correlation can produce biased estimated coefficients and, consequently, biased estimates of trade, regardless of methodology the latter is based on. Using panel data on the manufacturing exports of the 48 contiguous U.S. states to 24 Asian countries, we empirically test for local spatial linkages in the manufacturing exports of U.S. states to the Asian region. We investigate if spatial linkages are created by geographic, cultural, infrastructural, innovation asset, business environment, and economic development proximities. We find that all proximity weights generate statistically significant spatial linkages.

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Article provided by Southern Regional Science Association in its journal Review of Regional Studies.

Volume (Year): 40 (2010)
Issue (Month): 3 ()
Pages: 287-301

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Handle: RePEc:rre:publsh:v:40:y:2010:i:3:p:287-301
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  1. Bougheas, Spiros & Demetriades, Panicos O. & Morgenroth, Edgar L. W., 1999. "Infrastructure, transport costs and trade," Journal of International Economics, Elsevier, vol. 47(1), pages 169-189, February.
  2. Clark Warburton, 1946. "The Misplaced Emphasis in Contemporary Business-Flucation Theory," The Journal of Business, University of Chicago Press, vol. 19, pages 199.
  3. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
  4. Daron Acemoglu & Simon Johnson & James A. Robinson, 2000. "The Colonial Origins of Comparative Development: An Empirical Investigation," NBER Working Papers 7771, National Bureau of Economic Research, Inc.
  5. I-Hui Cheng & Howard J. Wall, 2004. "Controlling for heterogeneity in gravity models of trade and integration," Working Papers 1999-010, Federal Reserve Bank of St. Louis.
  6. Lee, Lung-fei & Yu, Jihai, 2010. "Estimation of spatial autoregressive panel data models with fixed effects," Journal of Econometrics, Elsevier, vol. 154(2), pages 165-185, February.
  7. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
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