Economic Impact of Exported Services in Fla. May Exceed $40 Billion, FIU Study Reveals

Services Account for Three-Quarters of Gross State Product

MIAMI, Fla. (May 8, 2001) - Services exported from Florida to foreign countries have a major economic impact in the Sunshine State - as much as $40.2 billion, a new study from Florida International University reveals.

The growing service industry already accounts for 78 percent of Florida's annual gross state product. But the new study, commissioned by FIU Institute for International Professional Services and produced in partnership with the Greater Miami Chamber of Commerce, shows that benefits for the Florida economy from services exports fall somewhere between $28.9 billion and $40.2 billion.

The study also documents a strong link between the expansion of exports of services and job creation -- a tremendous opportunity for Florida, the fourth-largest and fastest-growing state in the nation. The report, titled "The Impact of International Services on Florida's Economy"- indicates that between 384,404 and 534,635 jobs were created in 2000 throughout the state as a result of exports of international services.

Such exports generated between $10.3 billion and $14.4 billion in wages for Florida workers.

"Miami-Dade County has 363,000 people employed in the services sector of our economy," noted Chamber President William O. Cullom. "Miami-Dade added 18,600 service jobs in the last 12 months. This is the future for Florida, and we want to be a major part of this expansion."

Using two distinct approaches, the study calculates services exports from Florida of between $14.5 billion and $20.1 billion. Florida services exports fall within the approximate range of 41 percent to 56 percent of merchandise exports, a category that, as reported by Enterprise Florida, totaled $35.9 billion in 2000. Nationwide, U.S. services trade totaled $259 billion in 2000, an 8.9 percent increase from 1999. Experts estimate that this trade could reach $650 billion before 2010.

Another newly released collaboration between the FIU Institute and the Miami Chamber, "Florida's Services Sector: A Needs-Assessment Study," recommends policies and programs that can encourage the services sector to grow and prosper. In addition to identifying the types of services exported from Florida, as well as their dollar value, the study further confirms the link between the expansion of services exports and job creation. Its findings are designed to provoke discussion on how best to formulate a blueprint for Florida's economic growth based on services.

These findings demonstrate the stake that statewide economic and political interests have in maximizing Florida's strengths as a hemispheric and global services center. "Service competitiveness is critical for job creation in Florida," said FIU Provost/Executive Vice President Mark B. Rosenberg. "Given the state's multicultural and bilingual population, Florida is uniquely poised to expand even further its international service competitiveness."

Mercedes Martha Ponce, assistant director of the FIU institute, and Marisa Feito, senior vice president for the Chamber, discussed this potential with key state leaders in Tallahassee last month. Among those present were Dr. Pamela Dana, director of the Executive Office of the Governor's Office of Tourism, Trade and Economic Development; state Rep. Carlos Lacasa; and representatives of the offices of Senate Majority Leader Jim King and Sens. Daryl Jones, Ron Silver and Rudy García.

The FIU Institute for International Professional Services was established in fall 1999 as part of FIU's Latin American and Caribbean Center with the mission to gather statistics on services and explore services-related trends. These recently released studies reflect one of the institute's most important mandates: to generate new knowledge and research on services to assist policymakers and the business community in accelerating Florida services firms' competitiveness in the global economy.

The results of the studies will be used to support services-sector activities, particularly in the areas of market planning strategies and identification of strategic growth sectors and regions and to help enhance the image of Florida as a major player in the New Economy.

For copies of the economic impact and need assessment studies or other information about the Institute and its programs, please contact Betty Dueñas at (305) 348-2893.

Founded in 1965, FIU is now one of the nation's largest universities and Florida's only metropolitan, public institution to hold both a Phi Beta Kappa chapter and the leading research university rating from the Carnegie Foundation for the Advancement of Teaching.

Media contacts: : Mercedes Martha Ponce, FIU Institute for International Professional Services, (305) 348-2894, or Aileen Izquierdo, FIU Media Relations, (305) 348-6999.