Everything about The Economy Of Texas totally explained
The
economy of Texas is a dominant force in the
economy of the United States. One of the largest growing economies in the nation,
Texas is, as of 2006, home to six of the top 50 companies on the
Fortune 500 list and 56 overall, more than any other state.
(External Link
) Texas has an economy that's the
second largest in the nation and the
15th largest in the world based on GDP (PPP) figures. As the largest exporter of goods in the United States, Texas currently grosses more than 100 billion dollars a year in trade with other nations.
In 2006, Texas had a
gross state product of $1.09 trillion, the
second highest in the U.S.
Gross state product per capita as of 2005 was $42,975.
Texas is second only to California, with almost 11 million civilian workers giving it the second largest workforce of any state in the
United States. The lack of personal
income tax as well as the largely undervalued real estate throughout Texas has led to large growth in population. Since the 2003 legislature the Governor's office has made economic development a top priority.
Much economic activity in Texas is regional– for example, the
timber industry is important in
East Texas's economy but a non-factor elsewhere, while
Houston, the state's largest urban economic enclave stands at the center of the
petrochemical,
biomedical research trades, shipping, and aerospace (particularly
NASA). Meanwhile, Dallas houses the state's predominant
defense manufacturing interests and the expansive
information technology labor market. West Texas and the panhandle is dominated by ranching .
Texas's growth can be attributed to the availability of jobs, the low cost of housing, the lack of a personal
state income tax, high quality of education, low taxation and limited regulation of
business, a central geographic location, a
limited government, favorable
weather, and plentiful supplies of oil and natural gas. There are currently 33 billionaires residing in Texas today. Dallas has 11 billionaires, the most of any city in Texas.
Texas has the highest number of
Fortune 500 company headquarters in the United States, fifty-eight. This has been attributed to both the growth in population in Texas and the rise of oil prices in 2005. Houston has the second highest number of Fortune 500 companies in the US, second to New York.
History
Texas remained largely rural until
World War II, with
cattle ranching, oil, and
agriculture as its main industries. Cattle ranching was never Texas's chief industry – before the oil boom back to the period of the first Anglo settlers, the chief industry was
cotton farming. After
World War II, Texas became increasingly industrialized.Its economy today relies largely on information technology, oil and natural gas, fuel processing, electric power,
agriculture, and manufacturing.
Exports
In 2006, for the fifth year in a row, Texas led the nation in export revenues. Texas exports for 2006 totaled $150.8 billion, which is $22.1 billion more than 2005 and represents a 17.2 percent increase. In 2002, the
Port of Houston was 6th among the top sea ports in the world in terms of total cargo volume;
Air Cargo World rated
Dallas-Fort Worth International Airport as "the best air cargo airport in the world". The ship channel at the
Port of Houston—the largest in the U.S. in international commerce and the sixth-largest port in the world.
Industries
Agricuture
Texas is a productive agricultural state with the most farms both in number and acreage in the United States. Texas leads the nation in number of cattle, which usually exceed 16 million head. The sprawling 320,000 deeded
acre (1,200 km²)
La Escalera Ranch, located south of
Fort Stockton, Texas, is one of the largest cattle
ranches in the Southwestern United States.
The state also leads nationally in production of sheep and goat products. Texas is
king of cotton leading the nation in cotton production, its leading crop and second-most-valuable farm product. In terms of traffic, DFW is the busiest in the state, third busiest in the United States, and sixth busiest in the world. The airport serves 135 domestic destinations and 40 international. DFW is the largest and main
hub for
American Airlines, the world's largest in terms of total passengers-miles transported and passenger fleet size.
Texas's second-largest air facility is Houston's
George Bush Intercontinental Airport (IAH).
Houston is the headquarters of
Continental Airlines, and is the airline's largest hub. IAH offers service to the most Mexican destinations of any U.S. airport. IAH currently ranks second among U.S. airports with scheduled non-stop domestic and international service.
Southwest Airlines, headquartered in Dallas, Texas, began its operations at
Dallas Love Field. It is the largest airline in the
United States by number of passengers carried domestically per year and the
largest airline in the world by number of passengers carried.
Lockheed Martin's Aeronautics division is located in
Fort Worth, Texas. The
F-16 Fighting Falcon, the largest Western fighter program is produced in
Fort Worth, Texas. The plane's successor, the
F-35 Lightning II will also be produced in Fort Worth.
Bell Helicopter Textron is headquartered in Fort Worth as well, and manufactures several helicopters for the military, including the
V-22, on which final assembly is performed in
Amarillo.
Other defense contractors with a large presence in Texas include
Lockheed Martin Missiles and Fire Control,
Raytheon,
DynCorp,
AECOM, and
KBR.
Computer Technology
Texans pride their state's history, but they also seek new social and technological developments. The Austin area is often nicknamed "Silicon Hills".
Dell's headquarters is located in the city's suburb,
Round Rock. Dallas is the birthplace of the
integrated circuit. The North Dallas area is called the "Silicon Prairie" for the area's high concentration of
Information Technology companies such as
Texas Instruments and
EDS. In addition,
Houston based
Compaq, was once the world's largest computer companies. After Compaq's merger with
Hewlett-Packard, the new owner currently employs more employees in Houston, than anywhere else in the world.
Energy
Texans consume the most energy in the nation both in per capita and as a whole. As wells are depleted in the eastern portions of the state, drilling in state has moved westward. as well as small solar powered efforts and the experimental installation of wave-powered generators.
Texas also is home to many of the world's largest oilfield services firms including Haliburton, Schlumberger and Dresser. The state has a number of pipeline operators, such as El Paso and Dynegy, along with diversified energy firms such as TXU and Reliant Energy.
Tourism
Texas has a large tourism industry. The state tourism slogan is "Texas: It's like a whole other country", a nod to Texas's diversity and history. Tourists might enjoy
San Antonio and
El Paso's hispanic culture, or
Fort Worth western attractions.
Galveston,
Corpus Christi, and
Padre Island are some of the popular Texas resort areas located on the
Gulf of Mexico. Houston is Texas' leading convention city. While, Dallas is also one of the nation's leading convention cities. Houston was the first city in Texas awarded with a CityPass.
Entertainment
Texas is a top filmmaking state.
Austin is now one of the leading filmmaking locations in the country. The popular soap opera's,
Dallas, exteriors were filmed on
Southfork Ranch, a location near
Plano, Texas. During 1995-2004, more than $2.75 billion has been spent in Texas for film and television production.
The
Texas Film Commission was founded for free services to filmmakers, from location research to traveling. Also many
Hollywood studios are relocating parts of their production divisions to the Austin area.
The media conglomerate
Clear Channel Communications is based in San Antonio, Texas.
Pi Studios and
Timegate Studios are based in the Houston area.
Blockbuster Video and
Cinemark Theatres are also based in the Dallas Fort Worth area.
Legislation & Grant Initiatives
In June 2003, as an effort to attract new businesses and facilitate growth, the Texas government passed legislation funding the
Texas Enterprise Fund and the
Texas Emerging Technology Fund. These funds have given more than $316 million to companies through 2006, making Texas one of the fastest growing economies in the nation. Further, initiatives such as Tort Reform (2003) and tax incentives are being utilized in order to help small and big business alike.
Texas as an independent nation
» See also Comparison between U.S. states and countries by GDP (PPP)
The economy of Texas is often cited for how it would compare to other countries if
Texas were an independent nation. The statistic quoted varies widely (usually placing Texas between 10th and 15th) depending on the source.
The two main issues are:
Texas's gross state product
According to the
Bureau of Economic Analysis, Texas's
Gross State Product (GSP) is $989 billion (2005 data, revised July 2006). The GSP increased at an annual rate of 5.1% in 2005. Texas is responsible for 7.9% of the United States'
gross domestic product.
2005
Further Information
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