The Effect of State Appropriations on Export-Related Employment in Manufacturing

Abstract

State governments use economic development programs to strengthen the economic bases of their states, increase tax revenues, and preserve and increase job opportunities. Export promotion organizations are a key element of these programs. This article attempts to partially address the lack of evaluative literature regarding the effectiveness of export promotion programs by providing an analysis of the relationship between state appropriations and export-related employment in manufacturing. The findings support the suggestion that state appropriations for export promotion result in higher employment for firms that are directly involved in exporting their products overseas. No evidence is found of a relationship between appropriations and employment in firms that produce the components of export products.

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