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Agglomeration Economies: Ambiguities and Confusions

Although considerable reliance has been placed on the concept of agglomeration economies in the analysis of industrial location, it tends to be ill-defined, and the term has come to assume a variety of connotations. A system of classification for agglomeration economies is outlined, which differs in several respects from previous ones, both in terms of definition and coverage. Certain aspects of this classification are explored, and attention is then given to a number of issues surrounding the concept of agglomeration economies that do not appear to have been adequately considered. These include the extent of agglomeration economies, the possible absence of agglomeration economies at a given agglomeration, and the spatial context of agglomeration economies.