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Chicago Fed Letter, No. 147, November 1999
A Regional Approach to Measures of Import Activity

Gains in the volume of international trade during recent decades have raised questions about the impact of this trade on the U.S. economy as a whole as well as on regions and specific sectors of the economy. Moreover, changes in the economic composition of regions have led economists to examine the relative impact of international markets and foreign exchange rates on the various regions of the country. For example, Clark, Sawyer and Sprinkle (1999), Cronovich and Gazel (1998), Hervey and Strauss (1998) and others have examined the impact of international trade (especially exports), exchange rates and foreign income growth on regional economies.



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