Urbanization and economic growth: A case of Brazilian cities

Abstract

The nexus between urbanization and economic growth is one that has caught the attention of many as global population numbers continue to rise. The two variables, especially in the content..'i of a country, can either enhance or deter growth. The study aims to analyse the relationship bet\'veen the 1:\-vo variables in Brazilian cities and how their contribution to GDP tray vruy with urbanization and other factors that contribute to agglomerate economies within the cities. The analysis uses panel data from 5 Brazilian cities ranging from 1999-2015 and makes use of analysis techniques such as Fixed Effects and Random Effects Model, and the Hausman test to verify the appropriate modeL A Dynamic Panel Data Estimation is also carried out to incorporate adjustment effects in the dependent variable. Variables such as Gross Domestic Product of the country and the cities, the urbanization levels and agglomeration factors shall be captured to assess the relationship they may have with the economic growth of the country.