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Rethinking the National Export Initiative

  • Caroline Freund

    ()

    (Peterson Institute for International Economics)

Four years ago, President Barack Obama set the goal of doubling exports within five years and creating 2 million new export-related jobs. The strategy put in place, however, has failed to achieve superior growth. Freund argues that the emphasis on small and medium enterprises in the National Export Initiative, while attractive, was misguided and recommends a specific set of policies that the administration should concentrate on to boost exports. An export boom requires a system that encourages the largest firms to invest and expand exports and facilitates the rapid growth of new highly efficient firms so we get more export superstars. She recommends (1) maintaining a competitive exchange rate, (2) US leadership on market access trade agreements, and (3) improving the business climate, including training and migration to fill the skills gap, encouraging investment and innovation, more stable energy prices, and championing trade openness.

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Paper provided by Peterson Institute for International Economics in its series Policy Briefs with number PB14-7.

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Date of creation: Jul 2014
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Handle: RePEc:iie:pbrief:pb14-7
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  1. Amiti, Mary & Konings, Jozef, 2005. "Trade Liberalization, Intermediate Inputs and Productivity: Evidence from Indonesia," CEPR Discussion Papers 5104, C.E.P.R. Discussion Papers.
  2. John C. Haltiwanger & Ron S. Jarmin & Javier Miranda, 2010. "Who Creates Jobs? Small vs. Large vs. Young," NBER Working Papers 16300, National Bureau of Economic Research, Inc.
  3. Pinelopi K. Goldberg & Amit Khandelwal & Nina Pavcnik & Petia Topalova, 2008. "Imported Intermediate Inputs and Domestic Product Growth: Evidence from India," NBER Working Papers 14416, National Bureau of Economic Research, Inc.
  4. William R. Cline, 2013. "Estimates of Fundamental Equilibrium Exchange Rates, May 2013," Policy Briefs PB13-15, Peterson Institute for International Economics.
  5. Xavier Gabaix, 2011. "The Granular Origins of Aggregate Fluctuations," Econometrica, Econometric Society, vol. 79(3), pages 733-772, 05.
  6. Freund, Caroline & Pierola, Martha Denisse, 2012. "Export surges," Journal of Development Economics, Elsevier, vol. 97(2), pages 387-395.
  7. Chang-Tai Hsieh & Peter J. Klenow, 2012. "The Life Cycle of Plants in India and Mexico," NBER Working Papers 18133, National Bureau of Economic Research, Inc.
  8. Gary Clyde Hufbauer & Theodore H. Moran & Lindsay Oldenski & Martin Vieiro, 2013. "Outward Foreign Direct Investment and US Exports, Jobs, and R&D: Implications for US Policy," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 6680.
  9. Joseph E. Gagnon & C. Fred Bergsten, 2012. "Currency Manipulation, the US Economy, and the Global Economic Order," Policy Briefs PB12-25, Peterson Institute for International Economics.
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