The Economic Impact Of International Trade In A Small Regional Economy: The Case Of Miami, Florida

Abstract

This study estimates the economic impacts from international trade activity in Miami-Dade using an input-output model developed with IMPLAN software. Common observations suggest that international trade is an important determinant of the long-term economic growth of the metro area’s economy, as well as a key factor in the region’s pattern of short-run business cycles. The logistics of international trade requires not only port operations, but also involves numerous components of the transportation network. Local manufacturing firms are also likely to be involved in exporting or production requiring imported intermediate goods. 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. An economic model for Miami-Dade County is then used to estimate the local indirect and induced impacts of international merchandise trade.