BIO

My name is Sarah Kwara and I am a senior from Gainesville Florida. My major is economics with a minor in Spanish. This year I have expanded my research interests and the recent industry expansion of the aerospace sector has become the focus of my work. Analyzing the private sector's influence on the aerospace industry has allowed me to give this topic a platform for economic analysis. With a specific focus on Florida, I hope these trends and interactions appear relevant and engaging.

Privatization of the Aerospace Sector and its Economic Impact on Florida

Abstract

Between 2012 and 2019, scholars reported that the GDP for the space economy was tracking slightly higher than the overall United States Economy. Around this time, private sector dominance increased in the field following the end of the NASA shuttle program. Florida has been a key player in the space sector thus research asks, “How is Florida’s space industry performing in comparison to other states?” and “What, if any, has been the role of privatization to stimulate growth in Florida’s aerospace economy?” Using Bureau of Labor Statistics data to measure sector employment for aerospace industries this research employs a longitudinal linear regression in which each variable will be measured for the consecutive years of 2001 to 2021. The variables tested were total employment for Florida and Texas and the number of annual licensed and permitted launches. Although preliminary results indicate a significant relationship between launches and earnings for both Texas and Florida, Texas experienced a smaller marginal increase in launches per year compared to Florida earnings. In terms of overall employment numbers after 2015, Florida is continuing to experience growth, while Texas is starting to decline; forecasting can predict if this trend will persist. Future research should explore additional U.S. states with high levels of space activity and compare their performances. Doing so may indicate which states are best equipped to provide efficient output to the space economy.

Keywords: Aerospace, Privatization, Florida