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A Panel Data Modelling Of Agglomeration And Growth: Cross-Country Evidence

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  • Nuno Carlos LEITÃO

    ()
    (Polytechnic Institute of Santarém,Complexo Andaluz Apt 295, 2001-904 Santarém, Portugal)

Abstract

This manuscript analyzes the relationships between urban agglomeration and economic growth. We apply a static and dynamic panel data from European Union (EU-27), the United States, Japan, New Zealand and Mexico for the period 1990 to 2008. The results show that growth is highly correlated with urban agglomeration. The econometric models show that international trade is an important vehicle to expand the economic growth. The models also indicate that human capital promotes the economic growth.

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Bibliographic Info

Article provided by Research Centre in Public Administration and Public Services, Bucharest, Romania in its journal Theoretical and Empirical Researches in Urban Management.

Volume (Year): 8 (2013)
Issue (Month): 1 (February)
Pages: 67-77

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Handle: RePEc:rom:terumm:v:8:y:2013:i:1:p:67-77

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Keywords: economic growth; urban agglomeration and panel data.;

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  1. Baldwin, Richard E. & Martin, Philippe, 2004. "Agglomeration and regional growth," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 60, pages 2671-2711 Elsevier.
  2. Martin, Philippe & Ottaviano, Gianmarco Ireo Paolo, 1996. "Growing Locations: Industry Location in a Model of Endogenous Growth," CEPR Discussion Papers 1523, C.E.P.R. Discussion Papers.
  3. Richard Blundell & Steve Bond, 1995. "Initial conditions and moment restrictions in dynamic panel data models," IFS Working Papers W95/17, Institute for Fiscal Studies.
  4. Marius BRÜLHART & Federica SBERGAMI, 2008. "Agglomeration and Growth : Cross-Country Evidence," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 08.04, Université de Lausanne, Faculté des HEC, DEEP.
  5. Henderson, Vernon, 2003. " The Urbanization Process and Economic Growth: The So-What Question," Journal of Economic Growth, Springer, vol. 8(1), pages 47-71, March.
  6. BERTINELLI, Luisito & BLACK, Duncan, 2002. "Urbanization and growth," CORE Discussion Papers 2002044, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  7. Raul Livas Elizondo & Paul Krugman, 1992. "Trade Policy and the Third World Metropolis," NBER Working Papers 4238, National Bureau of Economic Research, Inc.
  8. Ades, Alberto F & Glaeser, Edward L, 1995. "Trade and Circuses: Explaining Urban Giants," The Quarterly Journal of Economics, MIT Press, vol. 110(1), pages 195-227, February.
  9. Xavier Sala-I-Martin & Gernot Doppelhofer & Ronald I. Miller, 2004. "Determinants of Long-Term Growth: A Bayesian Averaging of Classical Estimates (BACE) Approach," American Economic Review, American Economic Association, vol. 94(4), pages 813-835, September.
  10. Anthony J. Venables, 1993. "Equilibrium Locations of Vertically Linked Industries," CEP Discussion Papers dp0137, Centre for Economic Performance, LSE.
  11. Johnson, Andreas, 2006. "The Effects of FDI Inflows on Host Country Economic Growth," Working Paper Series in Economics and Institutions of Innovation 58, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  12. J. Vernon Henderson, Zmarak Shalizi, and Anthony J. Venables, 2001. "Geography and development," Journal of Economic Geography, Oxford University Press, vol. 1(1), pages 81-105, January.
  13. Mustapha Sadni Jallab & Monnet Benoît Patrick Gbakou & René Sandretto, 2008. "Foreign Direct Investment, Macroeconomic Instability And Economic Growth in MENA Countries," Working Papers 0817, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure.
  14. Windmeijer, Frank, 2005. "A finite sample correction for the variance of linear efficient two-step GMM estimators," Journal of Econometrics, Elsevier, vol. 126(1), pages 25-51, May.
  15. Matthieu Crozet & Pamina Koenig, 2005. "The Cohesion vs Growth Tradeoff - Evidence from EU Regions (1980-2000)," ERSA conference papers ersa05p716, European Regional Science Association.
  16. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
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