Between 1991 and 1998, rising exports were a key factor propelling the expansion of the U.S. economy. Moreover, in light of the rapid growth in East Asia during the 1990s, an increasing share of U.S. exports was being sent to East Asia. As national forecasters began, after mid-1997, to assess the potential consequences of the Asian crisis for the U.S. economy, regional forecasters began to do the same for their own areas. As our regional economists at the St. Louis Fed studied the situation, it became apparent that the markets of East Asia are less important for manufacturing firms in Missouri than they are for manufacturing exporters in the United States generally. In real, or inflation-adjusted, terms, during 1997 Missouri sent 14 percent of its manufactured exports to East Asia, roughly half the U.S. average.
Japan is the most important export destination for Missouri's manufactured exports.
In terms of product categories, Missouri's exports are concentrated in transportation equipment, primarily aircraft. During 1996 and 1997, over 42 percent of Missouri's exports to East Asia were transportation equipment. Exports of chemical products and industrial machinery were the next most important product categories. Despite Japan's importance as an Asian export destination, other foreign destinations Canada and Mexico, for example are far more important for Missouri's exporters. During 1996 and 1997 Japan received roughly 5 percent of exports from Missouri.