Entrepreneurial climate and US State foreign trade offices as predictors of export success

American state governments sponsor numerous foreign trade offices (FTOs) throughout the world. Although these offices constitute one of the most expensive export promotion activities, almost no research examining their effectiveness has been undertaken. Based on data from 114 state-sponsored FTOs, we hypothesize and find a positive relationship between expenditures for trade offices and exports. In addition, findings suggest that state export levels are conditioned by an interaction between FTO expenditures and variations in state entrepreneurial climate. Implications of these findings for managers and policy-makers are explored.