Studies from Federal Reserve Bank Have Provided New Information about Investment (Entrepreneurship and Occupational Choice In the Global Economy): Investment

2026 AUG 04 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- Research findings on Investment are discussed in a new report. According to news reporting from Dallas, Texas, by NewsRx journalists, research stated, “We present a new stylized fact: trade liberalization reduces entrepreneurship rates. We confirm this fact by showing that countries and industries with higher trade costs have higher entrepreneurship rates, even after accounting for confounding factors.”

The news correspondents obtained a quote from the research from Federal Reserve Bank, “We also use China’s entry to the WTO as an exogenous variation in trade exposure of different industries in the USA and show that industries that experienced a greater import penetration from China experienced a greater decline in their entrepreneurship rates. These patterns can be rationalized through the lens of a framework that combines a model of international trade with occupational choice.”

According to the news reporters, the research concluded: “Consistent with the implications of this framework, we also find supporting evidence that there is a negative relation between entrepreneurship rate and the share of exporting firms.”

This research has been peer-reviewed.

For more information on this research see: Entrepreneurship and Occupational Choice In the Global Economy. Imf Economic Review, 2025;73(2):596-616. Imf Economic Review can be contacted at: Palgrave Macmillan Ltd, Brunel Rd Bldg, Houndmills, Basingstoke RG21 6XS, Hants, England.

Our news journalists report that additional information may be obtained by contacting Ali K. Ozdagli, Federal Reserve Bank, Dept. of Research, 2200 N Pearl St, Dallas, TX 75201, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1057/s41308-024-00236-z. 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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