Agglomeration
Definition
Agglomeration refers to the phenomenon of economic activity congregating in or close to a single location, rather than being spread out uniformly across regions.
Related terms
Economies of Scale: The cost advantages reaped by companies when production becomes efficient due to increased output.
Urbanization Economy: Refers to cost savings associated with producing close proximity within urban areas where there is access to skilled labor force and advanced infrastructure.
Localization Economy: Refers specifically when industries related in some way cluster geographically together.
"Agglomeration" appears in:
