The Economic Impact of International Merchandise Trade in Miami-Dade County, Florida

Abstract

In this paper we provide estimates of direct, indirect and induced economic impacts from international trade activity in Miami-Dade using an input-output model developed with IMPLAN software. It is commonly believed in South Florida that international trade is an important determinant of long-term regional economic growth, as well as a key factor in the path of short-run business cycles. International merchandise trade is a critical component of the broader international commercial activity that characterizes Miami-Dade County. The relative importance of international trade has been the focus of popular speculation. BLS establishment survey data is used to identify the direct employment and labor compensation in industries that are directly involved in the movement of international cargo. Census data on origin of exports is used to estimate the direct impact of international trade-related local manufacturing activity. An IMPLAN model for Miami-Dade County is then used to estimate the local indirect and induced impacts of the international merchandise trade industry cluster.