On Net External Assets in Regions And States of the U.S.A.

We present rough estimates of net external assets for 8 regions and 51 states of the United States. These estimates have been derived from the data on gross state product and state personal income. We identify the largest creditors and debtors and observe relatively important disparities in net external assets across the states and regions. The analysis is also focused on various trends in the indebtedness of regional economies. Using the correlation matrices for selected base years, the degree of capital mobility across regions and states is quantified. We provide some evidence that states are more open to capital flows than regions. In the end, the convergence of net external assets between 1980 and 2000 is confirmed.