Abstract
Most states are currently engaged in some form of foreign export assistance as part of the state's overall economic development strategy. However, this raises the question as to whether scarce state economic development resources should be diverted from the more traditional economic development programs in order to fund foreign export stimulation. This study develops and tests a model to compare the employment multiplier of foreign exports with that of domestic exports. The results indicate that the foreign export employment multiplier is significantly greater than the domestic multiplier This lends support to a policy of using state economic development funds for foreign export development.
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