California Drives Global Economic Growth

Here is one to read whether you are an economic developer in California or another state.

This paper presents current patterns and recent trends in California’s exports, foreign direct investment, and port activity, three key measures of the state’s international business activity.

These are some of the major findings:

• In 2003, California’s exports grew for the first time since 2000, increasing by more than $1.7 billion from the previous year to $93.9 billion.

• California’s exports have since hit $81.5 billion for the first three quarters of 2004, suggesting a significant annual increase over 2003.

• Asia continues to be the major destination for California’s exports. Recent growth, however, has been concentrated in the NAFTA partners, particularly Mexico.

• California’s exports include proportionately more technology products and fewer transportation and chemicals products than exports from the rest of the United States.

• California’s growth in agricultural exports in 2003 was exceptionally strong, following a five-year period in which exports grew in only one year.

• The European Union and Canada helped drive California’s agricultural exports sharply upward.

• Almonds and cotton were important contributors to strong growth in California’s agricultural exports.

• California was the leading state for foreign direct investment in 2002, with 697,000 employees in foreign-owned firms.

• In 2002, foreign-owned firms in California owned property, plant, and equipment valued at $118.7 billion.

• Among majority-owned foreign affiliates, those from the United Kingdom employed the most workers, 110,300.

• Majority-owned foreign affiliates from Japan employed the most manufacturing workers, 33,200, and owned the most property, plant, and equipment, $22.8 billion.

• Of all Californians who worked in majority-owned foreign affiliates in 2002, 68.4 percent worked in nonmanufacturing sectors.

• California’s seaports processed 23 percent of all U.S. waterborne trade by value and 42 percent of all U.S. container trade in 2003.