The Rationale for Exports

Exports provide numerous benefits to regional economies. The following two documents outline the benefits:

  1. ExporTech program content:  Importance of Exporting for Companies
  2. Brookings: “Export Fast Facts” – shown below – from “Export Market Assessment Guide

Rationale for Exports — Brookings Export Fast Facts in Export Market Assessment Guide

“The following key facts have proven useful in clearly and simply establishing the rationale for focusing on exports. Many of these sources are updated regularly, so check for new data before publishing these figures.

  • 83 percent of global GDP growth is projected to occur outside the U.S. between 2013 and 2018.
  • The U.S. accounted for 20.3 percent of global middle class consumption in 2010, but is projected to account for just 4.5 percent by 2040.
  • 58 percent of exporters only sell to one foreign market.
  • Exports accounted for 37 percent of GDP growth in the U.S. from 2009 to 2012, and 54 percent of GDP growth in the 100 largest metro areas over the same time period.
  • Every billion dollars of exports supports 5,590 U.S. jobs.
  • From 2005-2009, U.S. manufacturers that exported saw revenues grow by 37 percent, while those that did not export saw revenues fall by 7 percent.
  • Compared to non-exporters, U.S. business services exporters have 100 percent higher sales, 70 percent higher employment, and 20 percent higher wages.”

Note: A source is listed for each fact in the original Brookings document. (p. 3).

 

For More Information

Brookings “Export Monitor 2018” was a primary data source for GCI metros. This web-based data source is described by Brookings as: “A data series that estimates production of goods and services exports by industry at the sub-national level.”

International Trade Administration — Trade Statistics:  The Office of Trade Policy & Analysis (TP&A) [an office of Industry & Analysis within ITA] publishes a variety of data series and reports for both public and government use. Start here for a list of their data and reports. Click here to see TP&A’s export-related jobs data.

International Trade Administration — Export.gov:  The U.S. Department of Commerce’s ITA collaborates with 19 U.S. Government agencies to bring Export.gov to help navigate the maze of government offices and get answers to questions, provide a single source for tools, assistance, and expert knowledge to expand international sales. Link to national, metro, and state trade data; data on U.S. exporting companies; and FTA Tariff tool. 

Stone & Associates Report — “On the Threshold: Refocusing U.S. Export Assistance Strategy for Manufacturers,” June 2013. Written for the U.S. Department of Commerce’s National Institute of Standards and Technology’s Hollings Manufacturing Extension Partnership.