How do agglomeration economies affect the development of cities?
Keywords:Agglomeration economies, Specialisation and diversification of the cities
This paper tries to shed some light on the role of agglomeration economies in the development of cities, offering a literature review of types of agglomeration economies and their sources, and how those economies can affect both economic growth and urban growth in the cities. Likewise, it aims to document how the agglomeration economies can influence the level of specialization and diversification of the cities.
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