The paper estimates agglomeration-effects for France, Germany, Italy, Spain, and the UK. Estimation takes into account endogeneity of the spatial distribution of employment and spatial fixed-effects. Empirical results suggest that agglomeration-effects in these European countries are only...

We estimate the effect of international trade on average labor productivity at the country level. Our empirical approach relies on summary measures of trade that, we argue, are preferable on both theoretical and empirical grounds to the one conventionally used. In contrast to the marginally...