The Location of U.S. States' Overseas Office
Forty U.S. states operated an overseas office in 2002. Treating overseas offices as sales offices, I modify Holmes (2005) so oces facilitate exports by reducing the transaction cost of selling abroad. From theory, states operate an office if aggregate savings outweigh operating costs. Exploiting the differences in where states locate offices in the data, and controlling for aggregate characteristics, I estimate the impact of exports on the probability of an office existing. In addition, I find the average state savings from an office is 0.005%--0.009% of exports with a cut-off threshold of $1.0--1.4 billion.
|Date of creation:||May 2009|
|Date of revision:|
|Contact details of provider:|| Postal: PO Box 646210, Pullman, WA 99164-646210|
Web page: http://faculty.ses.wsu.edu/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:wsu:wpaper:cassey-2. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Danielle Engelhardt)
If references are entirely missing, you can add them using this form.