State Trade Missions

Andrew Cassey ()

No 2010-13, Working Papers from School of Economic Sciences, Washington State University

Abstract: From 1997-2006, U.S. state governors led more than ve hundred trade missions to foreign countries. Trade missions are potentially a form of public investment in export promotion. I create a theory of public investment by introducing government to a Melitz (2003)-Chaney (2008) trade model. Controlling for state and country characteristics, the model predicts a positive relationship between missions and exports by destination. I create a data set on trade missions and match it with state export data, both with destination information. I estimate this relationship in the data, and reject the hypothesis that missions are to random destinations.

Keywords: international trade; exports; states; missions; investment (search for similar items in EconPapers)
JEL-codes: F12 F13 H76 L60 O24 R10 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2010-08
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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