The Relationship Between Export Promotion Spending and State Exports in the U.S.

Abstract

The impact of export promotion spending on export activity is a relationship frequently alluded to but which has yet to be empirically explored. It is generally accepted in practitioner circles that exporting is viewed as an important way of achieving the economic goals of businesses and governments. At the same time, firms often face barriers or inhibitors, some of which can be attributed to the policies of these same government entities that impede the process of exporting. This study empirically considers the relationship between export promotion spending and export activity. The results support the notion that U.S. state government spending on export promotion results in increased exports. The implications of the findings for both export managers and public policy makers are described.

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