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The association of productive activities in close proximity to one another. Agglomeration typically gives rise to external economies associated with the collective use of the infrastructure of transportation, communication facilities and other services. Historically, there has been a tendency for economic activity to concentrate spatially, the large markets associated with metropolitan areas adding to the external cost advantages. Agglomeration also facilitates the rapid circulation of capital, commodities and labour. In some circumstances, decentralization may counter agglomerative tendencies, for example if land costs and those associated with congestion in the central area are very high. (See also concentration and centralization; economies of scale; economies of scope.)Â (DMS)
Suggested Reading Malmberg, A. 1996: Industrial geography: agglomeration and local milieu. Progress in Human Geography 20: 392-403. |
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