The effect of state appropriations on export-related employment in manufacturing

State governments use economic development programs to strengthen the econo mic bases of their states, increase tax revenues, and preserve and increase job opportunities. Export promotion organizations are a key element of the se programs. This article attempts to partially address the lack of evaluat ive 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 sugges tion that state appropriations for export promotion result in higher employ ment for firms that are directly involved in exporting their products overs eas. No evidence is found of a relationship between appropriations and empl oyment in firms that produce the components of export products.