Michigan’s recent economic revival of late can be traced in part to two little-known sources – China and Saudi Arabia.

Michigan’s international exports increased 36.3 percent from 2009 to 2010, the third-largest increase in the nation, according to James Hohman, a fiscal policy expert at the Mackinac Center for Public Policy.

Michigan’s international exports increased from $32.7 billion in 2009 to $44.5 billion in 2010, bringing it back up to 2008 levels when the state had $45.1 billion in exports.

“It shows Michigan can compete and win in the global market place,” Hohman said.

Canada ($21.7 billion) and Mexico ($7.4 billion) were the leading markets for Michigan products. But China was third at $2.2 billion.

And Saudi Arabia had $1 billion from Michigan in 2010, up from $494 million in 2009. Hohman said exports to Saudi Arabia were nearly all in transportation equipment.

Exports make up 12 percent of the state’s gross domestic product (GDP), which is the market value of all goods and services produced by a state. Michigan is the only state in the country to have experienced negative GDP growth from 1999 to 2009. Hohman said Michigan’s GDP data for 2010 hasn’t been released yet.

Beginning Sept. 1, Michigan will finally repeal its 1976 item pricing law that forces grocery stores to put paper tags on most merchandise. The outdated law prevents electronic pricing and costs businesses and consumers money. As Gov. Rick Snyder said at the signing of the bill: “Hopefully it will create jobs because it will give opportunities for lower prices and more economic opportunity. … There’s much more worthwhile things that people ought to be doing than spending their time on stickers.”

The repeal should be a virtual “no-brainer.” After all, technological advances have long made paper pricing a thing of the past, which is why Michigan is one of only two states that mandate the practice. But some employee unions are against the measure, claiming it will cost jobs. Michigan AFL-CIO President Mark Gaffney said that the change will eliminate 200 to 300 positions, and the United Food and Commercial Workers Union, which represents Meijer employees, also believes the measure will lead to layoffs.

If it is true that government mandates can create employment and wealth, then I have a proposal. Instead of the current law, which requires businesses to have at least one paper tag per item, the state should mandate 10 tags per item. In fact, maybe we should up that to 100 tags per item. After all, think of how many more jobs will be created by forcing businesses to hire more and more workers to comply. Unfortunately, that law would have the opposite effect.

Economic illiteracy has long caused some to believe government can simply mandate certain laws with no cost to businesses, employers or citizens. The truth of the matter is that item pricing merely shifts business costs from one area into another. Without the law, perhaps businesses will hire more cashiers, cleaners or bakery staff. Or maybe they will simply lower their prices for customers. There are countless other areas businesses could better spend their money.

One thing is for sure: Government mandates do not create jobs or prosperity.