A panel data modelling of agglomeration and growth: cross-country evidence

This manuscript analysis the relationships between urban agglomeration and economic growth. We apply a static and dynamic panel data approach 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 evidence that international trade is an important vehicle to expand the economic growth. The models also indicate that human capital promotes the economic growth.