Recent Studies from Federal Reserve Bank Add New Data to Investment (Dynamic Gains From Trade Agreements With Intellectual Property Provisions): Investment

2025 APR 04 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- A new study on Investment is now available. According to news originating from St. Louis, Missouri, by NewsRx editors, the research stated, “I develop a quantitative theory of bilateral trade agreements with intellectual property (IP) provisions in a multicountry growth model. The model’s dynamics are driven by innovation and technology licensing.”

Our news journalists obtained a quote from the research from Federal Reserve Bank, “Imperfect IP enforcement leads to reduced royalty payments and growth. Governments negotiate tariffs and IP enforcement through Nash bargaining. Gains from the trade agreement vary along the transition. Developing countries experience short-term losses, while developed countries gain in both the short and long run. A government with short-term goals may reduce losses but at the cost of lower growth and welfare.”

According to the news editors, the research concluded: “Tariffs could discourage developing countries from deviating from the agreement.”

This research has been peer-reviewed.

For more information on this research see: Dynamic Gains From Trade Agreements With Intellectual Property Provisions. Journal of Political Economy, 2025. Journal of Political Economy can be contacted at: Univ Chicago Press, 1427 E 60TH St, Chicago, IL 60637-2954, USA. (University of Chicago Press - press.uchicago.edu; Journal of Political Economy - /ucp/journals/journal/jpe.html)

The news correspondents report that additional information may be obtained from Ana Maria Santacreu, Federal Reserve Bank, St. Louis, MO 63102, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1086/734094. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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