| Abstract: | ABSTRACT As a means of promoting economic development state governments are increasing their levels of support for export promotion; however, there has been virtually no statistical analysis of the effects of the state export promotion expenditures. The present study specifies and estimates a cross-section model in order to quantify the relationship between state export promotion and exports. The empirical analysis allows for the calculation of the export promotion elasticity of exports on a state basis. Two conclusions are that the rationale supporting export promotion expenditures is supported empirically and that there is much diversity among states for the estimated elasticity. |
