Was Europe a Balancing Force for the Regional Distribution of Exports from the United States?

Lawrence Davidson

No 2004-15, Working Papers from Indiana University, Kelley School of Business, Department of Business Economics and Public Policy

Abstract: This paper uses a Similarity Index to test the relative importance of regional and global integrating forces on the location of export activity in the United States from 1996 to 2001. I find trade patterns that do no support the importance of distance and suggest that globalization was important for understanding trade changes during the late 1990s. Whereas Mexico and Canada were responsible for polarizing US trade from regions within the US, the demand for US goods by European destinations had the effect of making these US regions more alike or balanced in their exports. Policy implications focus on the need for increased understanding of how industrial and destination factors enter into changes in the location of a country’s export origination.

Date: 2004
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