November 15, 1995

November 15, 1995 | FYI on

As U. S. Exports to Asia Boom, So Does the Creation of American Jobs

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November 15,1995 As U.S. Exports to Asia Boom, So Does Creation of American jobs

By John T. Dori Research Assistant Tradewith Asia is vitally important to the American economy. U.S. exports to East Asia and the Pacific Rim in 1994 grew at a healthy 16.2 percent to more than $153 billion. This is the steepest in- crease since 1988. The prosperous nations of the Asia-Pacific region purchased over $45 billion more from U.S. exporters than did the 15 nations of the European Union, and almost $30 billion more than Europe as a whole. More exports to Asia means more jobs for Americans. The U.S. Department of Commerce esti- mates that 20,000 American jobs are created for each $1 billion in exports. Thus, in 1994, more than 3 million Americans owed their jobs to U.S. exports to Asia. And of these 3 million jobs, more than 428,000 were created in 1994 alone. The job-creating benefits of these exports were spread liberally across the United States in 1994, with 42 of the 50 states exporting more to Asia than in the previous year. California is noteworthy in this regard. Its aggressive export promotion program aimed at Asia and the Pacific Rim helped the Golden State increase its total 1994 exports to the region by almost $7 billion, creating jobs for more than 126,000 Californians. Other noteworthy performances were turned in by Arizona (21.9 percent growth), Georgia (32.0 percent), Florida (26.6 percent), Illinois (22.8 percent), Oregon (21.9 percent), and Texas (19.6 percent). Trade with Asia is increasingly important to the health and growth of the American economy. In order to create more American jobs and a higher standard of living for the American people, the U.S. must expand its access to the increasingly prosperous markets of the Asia-Pacific region. Wash- ington can do this by continuing to promote lower trade barriers throughout the region. As the U.S. export figures show, America cannot afford trade wars with Asian countries. The following chart provides a graphic indication of how much this country stands to benefit or lose in trade with Asia. Continuing on the path toward liberalized trade with this lucrative region is the road to continued American prosperity. The path toward protectionism and increased U.S. barri- ers to trade, on the other hand, will lead to America's being cut out of Asia's growing markets, and thus to fewer jobs and a lower standard of living for all Americans.

YY1 #70195

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U.S. Exports to Asia and jobs Supported: A State-by-State Analysis Millions of jobs Supported Current Dollars 1990 1991 1992 1993 1994 in 1994 -:$1 187 P-7-70" 67@' @9 Alaska 2,489 2,892 3,182 2.517 2,228 44,560 4 71i a: @0'14 .m,42 82 .,J,93 Arkansas 325 384 450 475 591 11,820 igr% 17. 82k"O .41.4 Colorado 867 924 1,012 1,196 1,724 34,480 102'6' .3 1, 00. onnec ,4, Delaware 83 95 96 116 148 2.960 ;-583- A Q@-- @f;4- 0 W2 Georgia 1,842 2,022 2,346 2,031 2.681 53,620 3 35@i"v@ i4S 26-5. ..-.20 7@060 Idaho 542 539 653 594 844 16,880 Y" .2-1 V @W+,431 -16,577 '! 7, r3! @d 11540 AA '5 Indiana 1,670 1,707 1,431 1,506 1,694 33,880 6 J- 2 8:`.W 'W.". w I A& SM ',68-2: .. 10 Kansas 797 744 802 957 1,122 22,440 -,@- @782: 17:"..'.. --..1454 I 372h 27v,460 Loul@slana 5,431 5,291 5,211 5,232 5,493 109,860 lw, -4Y ".,. 4 1 400 J a ne ow 7 at . ZY@- Maryland 566 651 773 1,005 1,436 28,720 TV .6 660 usittso 2 VTPR@ - -1. 1'P@ "-6 Michigan 1,748 1,843 1,872 2,213 2,601 52,020 -T)M .2,309 84 Minneso a Mississippi 469 497 555 461 419 8,380 M 7 -661 z - S' -, '- 434' 60 IjT680 ... . ....... Montana 74 117 58 62 100 2,000 -4 ..640-- Nevada 68 101 115 111 119 2,380 -.6 .040 New Hampshir NewJersey 2,285 2,221 2,165 2,407 2,661 53,220 e'x -4-880 !Z 100 .244 New York 8,406 8,311 7,212 7,709 8,491 169,820 m o'', , 6 ., @,:: % 1% , -@ 8, rth -@a',Ad- ina @@i2 @k J. '75 2-,Q28 64920 North Dakota 37 37 38 35 51 1,020 0! MI '. h - - . , 4. -Wbo I :. 3,0@0' iB M9 O'S Oklahoma 467 480 530 547 669 13,380 egonA&, .954 .4.1217 . . 7; 84% S@r 340 Pennsylvania 2,586 2,800 2,842 2,994 3,447 68,940 "', : ii9 ded 4g.. -J -106@ 2ft '*,'I a 0 .0 !i Q : - South Carolina 1,020 1,175 1,339 1,374 1,733 34,660 Gi%io Tennessee 1,146 1,245 1,320 1,429 1,953 39.060 95T Y-;369 6A. POMtO,584: -1111110. 247j@180 :tw W Utah 768 863 1,614 1,270 1,308 26,160 V .77 50.- q@pqt . ...... . 46 1.. 292@. 440 Virginia 2,432 2,482 2,580 2,654 2,717 54,340 'J'@:, 1.65 6 15,564 V 14,"'- " '-: -- 3 1. Wi8i YashIpg&n .9?.@,:. @@J,7,P5 311:.280 West Virginia 400 422 416 424 481 9,620 lt24b Wisconsire- Wyoming 164 174 180 189 225 4, urce and Methodology: This Heritage Foundation study was based upon data collected by the Massachusetts Institute for Social and Economic Research (MISER) and available through the Department of Commerce's National Trade Data Base (NTDB). MISER reported the dollar amount of merchandise exports between the fifty U.S. states and each of their trading partners. Heritage Note on So

then tabulated the dollar amount of merchandise trade exported by each state to the countries of East and South Asia, the Pacific Rim, and the Pacific Islands, calculating in the process the number of jobs in each state supported by this trade with Asia. The calculation of the number of jobs in each state supported by trade with Asia was performed on the basis of the Commerce Department's estimate that each one billion dollars in exports results in the creation of approximately 20,000 jobs.

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