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DAILY NEWS ANALYSIS

  • 15 March, 2021

  • 2 Min Read

Agglomeration Effect

Agglomeration Effect

Agglomeration Economies:

  • A localized economy in which a large number of companies, services, and industries exist in close proximity to one another and benefit from the cost reductions and gains in efficiency that result from this proximity.
  • If an area specialises in the production of a certain type of good, all firms can benefit from various factors such as:
    • Good supply networks
    • Supply of trained workers
    • Infrastructure built specifically for the industry
    • Good transport links

Source: TH


Pradhan Mantri Suryodaya Yojana

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