Ohio’s Exports to the EU Grow in 2010
As I have previously blogged, Midwest’s exports to Europe grow overall in 2010, and Ohio was no different. While Ohio did not export a record level of goods to the EU like Indiana, the Buckeye State did see exports to the 27 EU member states increase by 10 percent to $7.268 billion. While this placed Ohio ninth among the fifty states in absolute size of exports to the EU, the state is one place behind Indiana, as the Buckeye State exported about a half a billion dollars less than its western neighbor.
While Ohio is exporting less to the EU than Indiana, the Buckeye State’s exports are more diverse. For starters, only five categories of exports from Indiana had values greater than $250 million, while Ohio had six categories—with Plastics and Rubber Products a close seventh at $224 million. As figure 1 shows, the Ohio export market is not dominated by one sector like the Indiana. While chemicals account for almost 60 percent of the Hoosier State’s exports to the EU, Ohio’s largest sector—Transportation Equipment—accounts for a third of total EU exports.
In addition, figure 2 shows that the growth in Ohio’s exports to the EU has not risen dramatically in the past ten years. Over this period, exports have grown to 155% of their 2000 values, while Indiana’s exports grew by over 250% during the same period. To put this in perspective, in 2000, Ohio exported $4.7 billion to the EU while Indiana exported only $3 billion, but in 2010, Indiana was able to overtake Ohio. It is impressive that Indiana was able to export more than Ohio, as Indiana is a smaller state. Figure 2 again demonstrates that Ohio’s exports are more balanced than those of the Hoosier State, as the major categories are all clustered around the state’s average growth, while Indiana’s growth has been driven primarily by chemicals, since chemicals exports from Indiana have grown by 436 percent in the past ten years.
As a result, it is interesting how both states have advantages and disadvantages in the composition of their exports to the 27 member states of the EU. While Ohio clearly “under-performs” compared to Indiana since the Hoosier State exports more despite being a smaller economy, Ohio’s exports are more diverse. On the other hand, while Indiana’s aggregate export levels are impressive, it is clear that the chemical industry (which includes pharmaceuticals) dominate trade with Europe.